AAK Annual Report 2020

AAK Annual Report 2020 16 Advancing our strategy to sharpen our focus and strengthen our position At the end of 2019, we launched a new strategic direction for AAK. Although we have preserved the DNA of our com- pany, building on a very strong historical performance, we have with this strategy chosen to prioritize and operate our business somewhat differently. Acknowledging that different industries are character- ized by different market dynamics, it is important to differentiate our approach to each of them. Therefore, we have identified four different portfolio roles: “Invest in continued growth”, “Bet for the future”, “Optimize performance”, and “Maintain current strategy”. Key enablers to deliver on ambition In addition to our portfolio roles, we have developed a strategic roadmap with key focus areas that will be addressed by a range of initiatives to lift our perfor- mance for the future. The goal is to further differentiate ourselves from our competitors by, for example, 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. Financially, we believe that the strategy supports our ambition of an average 10 percent year-over-year operating profit growth combined with a good and consistent earnings per share improvement. Strategy highlights 2020 Despite the challenges that the Covid-19 pandemic has caused, we have made several important achieve- ments in line with our strategy during the past year. Following a successful roll-out, we have adjusted our business, both financially and organizationally, to ena- ble a stronger execution of our strategy. This includes the cost optimization program that was launched in June 2020, expected to generate annual savings of about SEK 150 million. Another key highlight has been the launch of our company purpose, Making Better Happen™, which really embodies AAK’s core values and operating culture. Invest in continued growth Maintain current strategy Chocolate & Confectionery Fats Natural Emulsifiers Special Nutrition Technical Products & Feed Optimize performance Bakery Foodservice Dairy Personal Care Bet for the future Plant-based Foods Health & Nutrition platform