Post on 28-May-2020
transcript
The Co-Development Company
Capital Market Day November 28, 2017
The Co-Development Company
CEO update
Fredrik Nilsson Chief Financial Officer
and acting Chief Executive Officer
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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 including, in particular, statements about future events, future financial performances, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. AAK has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and AAK does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.
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Agenda
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2
3
4
5
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Acting CEO update
CFO update
South Latin America update with focus on Brazil
Asia update with focus on China
Sustainability update
Special Nutrition update
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AAK speakers
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Fredrik Nilsson Chief Financial Officer and acting Chief Executive Officer
Born: 1977 Employed: 2007 Nationality: Swedish
Gerardo Garza López de Hereida President South Latin America
Born: 1961 Employed: 2014 Nationality: Mexican
Torben Friis Lange President Asia and Chairman Global Sourcing and Trading
Born: 1963 Employed: 2010 Nationality: Danish
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AAK speakers
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Anne Mette Olesen Chief Marketing Officer including CSR Born: 1964 Employed: 2010 Nationality: Danish
Karel Stoschek President Special Nutrition
Born: 1970 Employed: 2012 Nationality: Finnish
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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.) 2009–2014 President of the Finnveden Metal Structures AB division 2008–2014
Born in 1973 Master’s degree in Industrial Engineering from Chalmers University of Technology in Gothenburg, Sweden Will assume the position as President and CEO, no later than June 1, 2018
Under the leadership of the Group management, the company has seen strong sales and profit growth. Together we will continue this growth journey and take AAK to the next level.
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The Co-Development Company
8
3,400
100 Global
Leading
Talented Employees
Sales in countries
positions
footprint
More than
20 Production and Customization plants
25 Sales offices
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Review of business – 2017 YTD
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27th consecutive quarter of record-high operating profit Very strong double-digit profit development in Food Ingredients Q2 and Q3 Double-digit organic volume and profit growth in Chocolate & Confectionery Fats Technical Products & Feed was in Q3 almost back to historical profit levels Earnings per share has improved by 17%
Volume 1,579,000 MT
(up 10% y/y, organically 5% y/y)
* Excluding non-recurring items ** Fixed FX
GROWTH & RETURNS HIGHLIGHTS
Operating profit* SEK 1,315 million (up 11% y/y, up 12% y/y**)
ROCE 15.3%
2017
Operating profit per kilo* SEK 0.83
(up 1% y/y, up 2% y/y**)
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FI January to September
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Volume (‘000 MT) Operating profit (SEK million) Operating profit per kilo (SEK)
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FI volume – January to September
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FI – organic growth January to September
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FI EBIT – January to September
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FI January to September – share of operating profit by segment
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36%
44%
52%
45%
38% 36%
30%
25%
33%
12%
16%
20% 20%
16% 17% 17%
5%
16% 17% 19%
21%
25%
33%
39%
9%
18%
11% 12% 13% 12%
10% 12%
3% 5% 6% 7% 7% 6%
17%
10%
2% 0% 1%
4% 2% 2%
-5%
5%
15%
25%
35%
45%
55%
2010 2011 2012 2013 2014 2015 2016 2017
Bakery Foodservice Special Nutrition Dairy Other niche specialities Frying and other commodities
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FI EBIT/kilo – January to September
15
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CCF – organic growth January to September
Volume (‘000 MT) Operating profit (SEK million)
Operating profit per kilo (SEK)
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Cocoa butter price
“Still good”
“Still good”
“Sweet spot”
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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Since last Capital Market Day
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Key program achievements 2017
Strengthened global and local go-to-market approach Strengthened regional account approach Focus on further increasing application expertise level
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Senior Nutrition brand Akovita® launched and first volumes delivered to customer New Customer Innovation Center for Plant-based Dairy in Richmond, USA Mapping of INNOBO-products globally to strengthen exchange across regions
Progressing with Multi-oil sustainability Global coordination of shipping activities Best practice sharing on key production capabilities globally
Go to Market Operational Excellence Special Focus Areas
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A tropical revolution in
chocolate production
TROPICAO™
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The AAK Way – Akovita® A leading provider of value-adding essential lipids
Heart health Brain health Digestion
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Brazil
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China
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Richmond, USA
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Trends
Health
Trust
Personalization Indulgence
Convenience
We focus on the global key drivers that affect the behavior of end consumers.
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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 International; Nielsen data; 2017
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Market growth
+3.9 - 9.3%
+3.9 - 9.3%
+0 - 3.9%
+1.3 - 3.9%
+1.3 - 2.2%
+0 - 1.1%
Source: Packaged Food, Euromonitor International, 2017
CAGR: 2017-2022
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Management ambition for the coming years
Average 10% year-over-year
EBIT improvement*
& Supporting a good
and consistent EPS improvement
Organic growth
Selective acquisitions Efficiency
Innovation & Mix
* Excluding acquisitions and at fixed FX
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Concluding remarks
We continue to remain prudently optimistic about the future.
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www.aak.com
Thank you!
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Q&A
Thank you!