Chocolate & Confectionery Fats - AAK · Our value proposition II. Optimise the production of...

Chocolate & Confectionery Fats

Anne Mette Olesen CMO

Chocolate

USD billion 107 MT million 7.5 Fat content 30% CAGR 2013-16 2.4%

Caramel and toffee USD billion 9 MT million 1.1 Fat content 10% CAGR 2013-16 2.5%

Market in scope

Confectionery* USD billion 116 MT million 8.6 CAGR 2013-2016 2.4%

Focus on pockets of higher growth * Market in scope Source: Euromonitor

Increasing consumption of chocolate Global obesity concern High cocoa butter prices High growth rates in hot climate markets Premiumisation Sustainability

2

Key players by value AAK has a strong position with all major players in the chocolate industry

Source: Euromonitor

The big six

Large regional

Other

61%

9% 30%

Mars

Mondelēz

Nestlé

Hershey’s

Ferrero

Lindt

16%

15%

13%

7%

7%

3%

3

Customer driven solutions

Industry driven solutions

Customer service

Meeting our customers’ needs

4

Our value proposition - more than cost efficiency…

For information regarding cocoa and cocoa butter please see www.icco.org 5

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

USD

/ton

Our value proposition I Enabling our customers to differentiate through creating innovative new chocolate products Overall

Health Sustainability

Soft

Crunch

Nuts

Gloss Migration

Air/light

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Customer driven solutions - Partner from idea to launch

Conceptualisation Laboratory work Demo samples

Upscaling Laboratory to large scale production Support on challenges

Innovation meetings Provide inspiration Idea generation – prioritisation

Launch Prepare and execute launch Support on challenges

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Our value proposition II Optimise the production of existing chocolate products

Quality • Blooming challenges

Production • Improve efficiency in processing

Cost • Need to improve profitability of brand • Recipe optimisation

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Industry driven solutions - Our development process

Launch Laboratory to large scale production Launch plan

Developing solution Laboratory work Pilot plant trials

Identifying market needs Share inspiration Idea generation

Solution profile Functionality, application, markets Potential

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Industry driven pipeline - Continuously manage and build

Idea Exploration Concept Develop Test Launch

3

2 1

5

4

ILLUSTRATIVE

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New industry solutions

CHOCOFILLTM NH 110 • For steep melting non-hydrogenated

fillings without tempering • Nominated for Confectionery Innovation

of the year at FIE

DeliAir NH • Non-hydrogenated filling fat

ILLEXAOTM MT 20 • Significantly improved milk fat tolerance

CEBESTM EG • Coating fat for extreme gloss

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Customer service

AAK AcademyTM is a strong way to show our customers our capabilities and the possibilities related to speciality oils and fats Training includes

• Oils & fats • Market trends • Functionality for differentiation • Chocolate applications like

filling fats, gloss and bloom retarding

• Practical work in lab

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341378

316

369

447

200250300350400450500

2010 2011 2012 2013 2014*

Operating profit (SEK million)

Chocolate & Confectionery Fats

299

320

309301

312

280

290

300

310

320

330

2010 2011 2012 2013 2014*

Volumes ('000 MT)

1.14 1.181.02

1.23

1.43

0.50

0.70

0.90

1.10

1.30

1.50

2010 2011 2012 2013 2014*

Operating profit per kilo (SEK)

* Q3 R12M 13

AAK is well positioned for continued growth

A strong passion for chocolate and second to none in oils & fats knowledge

Unmatched on customer co-development – partner from idea to launch

• Enabling our customers to differentiate • Optimizing existing chocolate production

Strong value-added industry solutions

AAK Academy

A “small big” company that can support and

supply solutions globally but with a local mindset

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