press & analyst conference – kamani oilaak.com/global/investor/investor relations...
TRANSCRIPT
Press & Analyst Conference – Kamani Oil September 25, 2015
Arne Frank, CEO Fredrik Nilsson, CFO
2 The Co-Development Company
Agenda
AAKtion
Acquisition of Kamani Oil Industries Pvt Ltd
Questions & Answers
3 The Co-Development Company
Around the world
4 The Co-Development Company
Expansion in growth markets
Nordics West Europe
USA CEE CIS
Asia Latin America
69% 62%47% 40%
30%
18%18%
31%35%
13% 20% 22% 25%
70%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2009 2012 2013 2015-2016*
Slow growing markets Medium growing markets Fast growing markets
5 The Co-Development Company
AAKtion The first choice for value-adding vegetable oil solutions
SALES INNOVATION EXECUTION Sales
Customer co-development
Innovation Service
Quality
Productivity
PEOPLE
6 The Co-Development Company
India
One of the youngest countries in the world with a median age of 25.5 years India will soon have the largest and youngest workforce in the world Rising per capita income and growing middle class Rapid urbanization: 10 million people move to cities every year Currently a high GDP growth rate compared to the average for the rest of the world (FY 2014: 7.5% compared to 3.4%*)
India key data
Population 1.2 Bn
Population under 15 years
30%
GDP GDP grew by 7.5% year on year in the third quarter of fiscal year 2014/15 (April-March).
Sources: Confederation of Danish Industry and the Economist Intelligence Unit
*Source: World bank
7 The Co-Development Company
Kamani Oil Industries Pvt Ltd - Leading company within speciality and semi-speciality fats in India
Annual volume of 100,000 MT Revenues of approx. SEK 1,000 million 2014 Factory 70 km from Mumbai and major port Well maintained and equipped R&D and QC facility Technical expertise and customer co-development is core Distribution network across India Administration and Sales office in Mumbai
8 The Co-Development Company
Kamani’s business segments
Kamani’s presence in the market
Food Ingredients Chocolate & Confectionery Fats
Chocolate & Confectionery fats Personal Care
Bakery Dairy Infant Nutrition Industrial
9 The Co-Development Company
The plant
Largest speciality and semi-speciality oils & fats company in India Kamani operates out of a production facility located in Khopoli
The total manufacturing capacity includes refining, fractionation, hydrogenation and interestification Highly flexible plant with small runs customized for orders
10 The Co-Development Company
Strategic rationale
Geographical expansion into growth market Very large and growing population in India Increasing urbanisation and middle class Small but rapidly growing chocolate market A local partner is critical to a successful investment in India Kamani is a good match Kamani’s positioning is very much in line with AAK’s Platform for increased AAK sales of semi-speciality and speciality products within Food Ingredients and Chocolate & Confectionery Fats Opportunity to accelerate a systematic customer co-development approach
11 The Co-Development Company
Integration The name of the company will be AAK Kamani Mr. Prakash Chawla will continue as Chief Executive Officer Focus on cross-selling AAK products, leveraging customers
and customer co-development
The acquisition is expected to start contributing to AAK’s operating profit during the first half of 2016
The acquisition will be included in the Food Ingredients and Chocolate & Confectionery Fats business areas Acquisition costs related to this transaction will be recorded during the fourth quarter 2015
12 The Co-Development Company
Questions & Answers
13 The Co-Development Company
Investor Relations contact
Fredrik Nilsson CFO Phone: +46 40 627 83 34 Mobile: +46 708 95 22 21 E-mail: [email protected]
Further Investor Relations material can be found at www.aak.com/en/Investor
www.aak.com