Page 9

AAK Annual Report 2016

During the year we have also completed our two new speciality and semi-speciality factories in Brazil and China which open up many new business possibilities in a wide range of applications. With the production plants in operation ZHKDYHWDNHQDPDMRUVWHSIRUZDUGLQRXUJOREDOJURZWK strategy and moved closer to our customers in two hugely important markets. During the course of AAKtion we have also, through investments in the organization, further developed our capabilities to provide our customers with tailor-made solutions. New Customer Innovation Centers have been opened and resources have been added particularly in New Product Development, Customer Innovation and Sales. These investments have enabled some important product launches, among them our chocolate solution TROPICAO™ which could be the largest value-adding novelty in our industry for PDQ\\HDUV7KH¿UVWVDOHVRIWKLVUHYROXWLRQDU\VROXWLRQDUH expected during the second half of 2017. In 2010, we launched a management ambition to double RXURSHUDWLQJSUR¿WIURP6(.PLOOLRQWR6(. million. With some support from acquisitions and positive FX, we achieved that ambition at the end of 2016, despite all the investments made in the organization in order to build a stronger AAK for the mid and long term and the unexpected head winds absorbed in for AAK important markets like Russia, Ukraine, Turkey and the Middle East. Beginning of The AAK Way – and our new management ambition The end of AAKtion also marked the beginning of our new company program, The AAK Way, which will guide us up through 2019. Our key focus with The AAK Way is to enable the company to continue to deliver strong organic growth. 7KLVZLOOEHDFKLHYHGE\IRFXVLQJRQ¿YHSULRULW\DUHDV*R to Market, Operational Excellence, Special Focus Areas, Innovation, and People. In parallel with our new company program we have established a new management ambition for the coming years. We expect, on average, a 10 percent year-over-year LPSURYHPHQWLQRSHUDWLQJSUR¿WZKLFKZLOOVXSSRUWDJRRG and consistent improvement in earnings per share. The ambition will be achieved through organic growth, innovation, a FRQWLQXHGLPSURYHGSURGXFWPLDQGDQLPSURYHGHI¿FLHQF\ 7KH$$.:D\VHUYHVVHYHUDOLPSRUWDQWSXUSRVHV¿UVWRI DOOWROLYHXSWRRXUYLVLRQ±WREHWKH¿UVWFKRLFHIRUYDOXH adding vegetable oils solutions; secondly, to reach the DIRUHPHQWLRQHGPDQDJHPHQWDPELWLRQDQG¿QDOO\WREXLOG an even stronger AAK, for the short, mid and long term. 7KH$$.:D\ZDVODXQFKHGLQ-DQXDU\7KH¿UVWPRQWKV with the program have developed according to plan. We are, of course, very much looking forward to the continuous execution of the program, creating even more value for all of our stakeholders – customers, shareholders, employees and suppliers. Sustainable growth In the past year we have seen some considerable achievements within our sustainability activities. There have been continued and very important developments within our palm oil sustainability commitments. By August 2016, we had achieved 98 percent traceability of palm oil, palm kernel oil and residuals back to mill origin. In parallel, qualitative risk assessments had been completed for all suppliers, geospatial assessments had been completed for all high-risk VXSSOLHUPLOOVDQGRQVLWHYHUL¿FDWLRQDXGLWVDQGVXSSOLHU engagement workshops had been carried out. In addition, on the shea kernel side, our work with women’s groups in West Africa continues to show great progress. During the season 2015/2016, we have included 90,000 women, exceeding our expectations by more than 20,000. Our continued focus on key areas has produced many PRUHVLJQL¿FDQWUHVXOWVGXULQJWKH\HDUDPRQJVWWKHPD VWURQJSURJUHVVRQRXUUHVRXUFHHI¿FLHQF\)XUWKHUPRUH ZHPDQDJHGWRUHGXFHZDVWHVHQWWRODQG¿OOE\SHUFHQW :DVWHWRODQG¿OOUHSUHVHQWHGSHUFHQWRIWRWDOZDVWH disposals, leaving 98.7 percent disposed for reuse, recycling or recovery. :HDUHRIFRXUVHYHU\SURXGRIWKHVLJQL¿FDQWSURJUHVV that we have made across all of our key areas. Sustainable growth is a foundation for future success and essential to our DVSLUDWLRQVWREHRXUFXVWRPHUV¶¿UVWFKRLFH Promising future Over the last few years we have built, and we continue to build, a very solid foundation. We are supported by strong business drivers, we have a strong organization, and we have had, and will continue to have, a clear and very wellaligned strategy and strategy execution. Supported by these prerequisites we will continue to work hard in order to create even better conditions and opportunities for all of our stakeholders. One of our main priorities going forward will be to further increase the organic growth in more of our speciality and semi-speciality products through our dedicated work with customer co-development. We continue to remain prudently optimistic about the future. 2016 has seen some very good achievements and we are determined to bring that momentum into 2017 and the years ahead. By way of conclusion, I would like to thank all of our customers, shareholders, our Board of Directors, and our business leaders and all their teams for their support during the past year. Arne Frank, CEO 5


AAK Annual Report 2016
To see the actual publication please follow the link above