Introduction to the Aarhus United Group
Introduction to the Aarhus United Group
Introduction to the Aarhus United Group
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<strong>Introduction</strong> <strong>to</strong> <strong>the</strong> <strong>Aarhus</strong> <strong>United</strong> <strong>Group</strong><br />
1<br />
Press Conference, Copenhagen and S<strong>to</strong>ckholm<br />
May 26, 2005<br />
Press Conference, May 2005
<strong>Aarhus</strong> <strong>United</strong> – a quick overview<br />
2<br />
• <strong>Aarhus</strong> <strong>United</strong> is a group with worldwide activities;<br />
quoted on <strong>the</strong> Copenhagen S<strong>to</strong>ck Exchange<br />
• Established in 1871; more than 130 years of<br />
experience in vegetable oils and speciality fats<br />
• Raw materials: palm oil, shea nuts, rapeseed, soy beans, etc.<br />
• Products: Ingredients for food, food service, consumer<br />
products<br />
• Cus<strong>to</strong>mers: The chocolate, confectionery, bakery, margarine<br />
and cosmetics industries, <strong>the</strong> catering business<br />
• Production: Danmark, England, USA, Mexico,<br />
Uruguay and Sri Lanka<br />
• Employees worldwide: 1,700<br />
• Revenue (2004): DKK 4,972m / SEK 6,128m<br />
• EBIT (2004): DKK 234m / SEK 288m<br />
• ROIC (2004): 11.6%<br />
Press Conference, May 2005
<strong>Group</strong> structure<br />
3<br />
Press Conference, May 2005
Sales break-down by segment and region<br />
Food service<br />
4<br />
Net margin by segment 2004 Turnover by region 2004<br />
Health Care<br />
Bulk oils<br />
O<strong>the</strong>rs<br />
Speciality fats<br />
Americas<br />
Asia, Africa &<br />
Oceania<br />
Scandinavia<br />
Eastern Europe<br />
Western Europe<br />
Press Conference, May 2005
Global presence<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Canada<br />
<strong>Aarhus</strong> <strong>United</strong><br />
USA Inc.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
México, S.A. de C.V.<br />
5<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Latin America, Brazil<br />
<strong>Aarhus</strong> <strong>United</strong><br />
UK Ltd<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Latin America, Uruguay<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Côte d’Ivoire Sarl<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Denmark<br />
<strong>Aarhus</strong> <strong>United</strong><br />
(Ghana) Ltd.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Poland sp. z.o.o.<br />
Ceylon Trading<br />
Company<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Bénin Sarl<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Croatia<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Asia-Pacific Sdn. Bhd.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
ZAO<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Hong Kong<br />
<strong>United</strong><br />
Plantations<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Australia Pty Ltd.<br />
Press Conference, May 2005
Global presence<br />
6<br />
Karlshamns<br />
Zaandijk, NL<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Canada<br />
<strong>Aarhus</strong> <strong>United</strong><br />
USA Inc.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
México, S.A. de C.V.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Latin America, Brazil<br />
Karlshamns<br />
Hull,UK<br />
<strong>Aarhus</strong> <strong>United</strong><br />
UK Ltd<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Latin America, Uruguay<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Côte d’Ivoire Sarl<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Denmark<br />
Karlshamns<br />
Sweden<br />
<strong>Aarhus</strong> <strong>United</strong><br />
(Ghana) Ltd.<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Poland sp. z.o.o.<br />
Karlshamns<br />
Poland<br />
Ceylon Trading<br />
Company<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Bénin Sarl<br />
Karlshamns<br />
Czech<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Croatia<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Asia-Pacific Sdn. Bhd.<br />
Karlshamns<br />
Malaysia<br />
<strong>Aarhus</strong> <strong>United</strong><br />
ZAO<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Hong Kong<br />
<strong>United</strong><br />
Plantations<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Australia Pty Ltd.<br />
Press Conference, May 2005
Competitive arena in Nor<strong>the</strong>rn Europe<br />
7<br />
Britannia<br />
Loders Croklaan<br />
NL<br />
Rotterdam NL:<br />
Golden Hope,<br />
Kuok, IOI<br />
Fuji<br />
Gent, BE<br />
Cargill R’dam<br />
Antwerp, Mainz<br />
Danraps/DLG<br />
rapeseed only<br />
<strong>Aarhus</strong> <strong>United</strong><br />
Kuok, Brake<br />
Karlshamns<br />
Walter Rau,<br />
Neuss<br />
Denofa (Orkla)<br />
Closing refinery<br />
ADM: R’dam,<br />
Kleve, Mainz<br />
Bunge,<br />
Mannheim<br />
ADM: Hamburg<br />
ADM Noblee<br />
Karlshamns<br />
Karlshamns<br />
ADM: Hamburg<br />
ADM Oelmuehle<br />
Cargill:<br />
Hamburg (Hobum)<br />
Cargill Salzgitter<br />
rapeseed only<br />
Mildola<br />
Red circle represents<br />
AUDK’s strong bulk<br />
market<br />
Blue circle represents<br />
value-added blends in<br />
Nor<strong>the</strong>rn Europe<br />
Yellow boxes<br />
represent main ”bulk”<br />
competi<strong>to</strong>rs on soft<br />
oils, palm and lauric<br />
oils as well as simple<br />
blends<br />
Grey boxes represent<br />
o<strong>the</strong>r strong bulk oil<br />
site locations<br />
Red boxes represent<br />
<strong>the</strong> Asian newcomers’<br />
forward integration in<strong>to</strong><br />
Europe<br />
Brown boxes<br />
represent ”valueadded”<br />
competi<strong>to</strong>rs<br />
Press Conference, May 2005
Global Production of Vegetable Oils<br />
– <strong>Aarhus</strong> <strong>United</strong>’s niche position in perspective<br />
8<br />
• Global production of vegetable<br />
oils is approximately<br />
105,900,000 <strong>to</strong>nnes<br />
• The global production of<br />
vegetable oils split by type<br />
• Soft oils: 69,500,000 <strong>to</strong>nnes<br />
• Tropical oils: 35,000,000 <strong>to</strong>nnes<br />
• Exotic fats incl. cocoa butter:<br />
1,400,000 <strong>to</strong>nnes<br />
• <strong>Aarhus</strong> <strong>United</strong> holds a very<br />
strong position on niche markets<br />
based on exotic fats and tropical<br />
oils<br />
Global production of vegetable<br />
oils, 2004E – split by type<br />
Soft oils<br />
65.6%<br />
<strong>Aarhus</strong> <strong>United</strong>’s<br />
served market<br />
Exotic fats incl.<br />
cocoa butter<br />
1.3%<br />
Tropical oils<br />
33.1%<br />
Source: <strong>Aarhus</strong> <strong>United</strong><br />
Press Conference, May 2005
Dual strategy:<br />
Grow <strong>the</strong> business and Enhance competitiveness<br />
9<br />
Grow Grow <strong>the</strong> <strong>the</strong> business:<br />
•• To To develop develop <strong>the</strong> <strong>the</strong> market market leadership leadership<br />
within within <strong>the</strong> <strong>the</strong> field field of of speciality speciality fats fats for for <strong>the</strong> <strong>the</strong><br />
chocolate chocolate and and confectionery confectioneryindustry industry<br />
•• To To increase increase earnings earnings from from<br />
foodservice, foodservice, retail retail and and bakery bakery fat fat<br />
products products<br />
•• To To utilise utilise <strong>the</strong> <strong>the</strong> <strong>Group</strong>’s <strong>Group</strong>’s strong strong palm palm oiloilbasedbased production production <strong>to</strong> <strong>to</strong> meet meet <strong>the</strong> <strong>the</strong> fastfastgrowinggrowing demand demand for for products products free free of of<br />
trans-fatty trans-fatty acids acids<br />
•• To To increase increase <strong>the</strong> <strong>the</strong> focus focus on on sales sales of of<br />
speciality speciality fats fats for for cosmetics, cosmetics, dietary dietary<br />
supplements supplements and and pharmaceuticals<br />
pharmaceuticals<br />
Enhance competitiveness:<br />
•• To To focus focus on oncost cost efficiency efficiency<br />
•• To To exploit exploit <strong>the</strong> <strong>the</strong> synergistic synergistic effects effects<br />
made made possible possible by by <strong>the</strong> <strong>the</strong> new new <strong>Group</strong> <strong>Group</strong><br />
structure structure<br />
•• To To continue continue investing investing in in advanced advanced<br />
technology technologyin in order order <strong>to</strong> <strong>to</strong> increase increase <strong>the</strong> <strong>the</strong><br />
<strong>Group</strong>’s <strong>Group</strong>’s competitive competitive ability ability<br />
•• To To focus focus on on innovative innovativeinitiatives initiatives that that<br />
can can give give cus<strong>to</strong>mers cus<strong>to</strong>mers more more added added value value<br />
Press Conference, May 2005
Financials 2005-2006<br />
• Stable <strong>to</strong>tal volume due <strong>to</strong><br />
decrease in bulk oil volume<br />
and increase in speciality<br />
fats and foodservice<br />
volume, i.e. more valueadded<br />
products<br />
• Increase in speciality fats<br />
as a result of <strong>the</strong> 5% rule in<br />
EU and increased<br />
applications in o<strong>the</strong>r<br />
parts of <strong>the</strong> world<br />
• Bulk oil sales<br />
under pressure<br />
• Improve sales of<br />
trans-free palm-based<br />
products in USA<br />
• BSP sales contribute<br />
from 2006<br />
10<br />
Index<br />
190<br />
180<br />
170<br />
160<br />
150<br />
140<br />
130<br />
120<br />
110<br />
100<br />
2003 2004 2005E 2006E<br />
Tonnes (1,000) 765<br />
Revenue (DKKb)<br />
Net margin (DKKm)<br />
EBIT<br />
Tonnes<br />
Net margin<br />
2003 2004 2005E 2006E<br />
4.5<br />
923<br />
840-870<br />
850-880<br />
Operating income (DKKm) 153 234 210-230 260-280<br />
843<br />
5.0<br />
1,000<br />
5.1-5.4<br />
1,005-1,035<br />
Press Conference, May 2005<br />
5.2-5.5<br />
1,065-1,095
Learn more on our homepage:<br />
www.aarhusunited.com<br />
11<br />
Press Conference, May 2005
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