Chocolate & Confectionery Fats Market in scope Chocolate USD - - PowerPoint PPT Presentation

Chocolate & Confectionery Fats

Anne Mette Olesen

CMO

Chocolate

USD billion 1 0 7 MT million 7 .5 Fat content 3 0 % CAGR 2013-16 2 .4 %

Caramel and toffee

USD billion 9 MT million 1 .1 Fat content 1 0 % CAGR 2013-16 2 .5 %

Market in scope

Confectionery*

USD billion 1 1 6 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

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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%

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 Custom er driven solutions  I ndustry driven solutions  Customer service

Meeting our customers’ needs

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Our value proposition

• more than cost efficiency…

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

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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

I nnovation m eetings

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 I dentifying m arket needs Share inspiration Idea generation Solution profile Functionality, application, markets Potential

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Industry driven pipeline

• Continuously manage and build

I dea Exploration Concept Develop Test Launch 3 2 1 5 4 ILLUSTRATIVE 10

New industry solutions

CHOCOFI LLTM NH 1 1 0

• For steep melting non-hydrogenated

fillings without tempering

• Nominated for Confectionery Innovation
• f the year at FIE

DeliAir NH

• Non-hydrogenated filling fat

I LLEXAOTM MT 2 0

• 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

• ur 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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3 4 1 3 7 8 3 1 6 3 6 9 4 4 7 200 250 300 350 400 450 500 2010 2011 2012 2013 2014* Operating profit (SEK m illion)

Chocolate & Confectionery Fats

2 9 9 3 2 0 3 0 9 3 0 1 3 1 2 280 290 300 310 320 330 2010 2011 2012 2013 2014* Volum es ('000 MT) 1 .1 4 1 .1 8 1 .0 2 1 .2 3 1 .4 3 0.50 0.70 0.90 1.10 1.30 1.50 2010 2011 2012 2013 2014* Operating profit per kilo (SEK)

* Q3 R12M

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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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