AAK Annual Report 2019

19 already has a good starting point through engagements with key players in the market for plant-based dairy and plant-based meat, but we will lift our capabilities further to respond to the fast-moving market requirements. underexploited, high-value product applications exist, and opportunities in shifting product mixes towards these higher-value products in specific applications as well as optimizing how to serve the markets will thus be pursued. In Foodservice, our business is also characterized by large variations in the value that we can capture depending on the applications. As in Bakery and Dairy, there are pockets of high-value applications and prod- ucts, and the focus going forward will thus be to focus on the higher-value products in the portfolio as well as to optimize our go-to-market approach. Key enablers to deliver on ambition We have developed a strategic roadmap with key focus areas that will be addressed by a range of initiatives to lift our performance for the future. The goal is to further differentiate ourselves from our competitors by enhancing our Customer Co-Development approach and sustainability offerings. To succeed, we need to offer a customer experience that is second to none and create even more differentiated solutions meeting the needs of our customers, consumers and the world we live in. Our aim is to continue our growth journey by further utilizing our global strengths and harvesting synergies. To enable this, we will strengthen our global product management to fully leverage insights, expertise and resources as well as aim for global scale effects and efficiencies with more integrated and holistic end-to-end supply chain planning and execution. Natural Emulsifiers Personal Care Technical Products & Feed The market shows a clear increase in consumer demand for healthy and fortified nutrition. As a result, consumer goods companies are looking to develop product offerings meeting this demand. This gives AAK an opportunity to build capabilities related to oils and fats health claims to enable our customers to claim health benefits. The plant-based foods market is a fast-growing market where oils and fats can be an impactful differ- entiator to the quality, taste and texture of the final product. Our deep and broad knowledge within oils and fats provides an opportunity for AAK to become the preferred provider to plant-based foods companies. AAK Plant-based Foods Health & Nutrition platform For the remaining segments within AAK – Natural Emulsifiers, Personal Care, and Technical Products & Feed – the current strategy stays the most promising option for further value creation. Natural Emulsifiers (lecithin) is a speciality segment with a large overlap with AAK product applications. Our recent acquisition in the UK is a first step into this market. Personal Care is a growing business with a strong value proposition in the beauty industry’s quest to move to more natural ingredients, where the future growth rates will be a function of the industry’s ongoing replacement of mineral oils. Technical Products & Feed is another healthy business, functioning as an outlet for various side- streams as well as serving the market with strong value propositions in, for example, animal feed and waxes for candles. Bet for the future Maintain current strategy