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Expectations for a KIC
in the food innovation
landscape
                                                   frozen culture
Esben Laulund, SVP Innovation, Chr. Hansen


                                             natural red
                                                              chewable probiotic
Today’s key points
    About Chr. Hansen

    Expectations to a Food KIC

    Moving forward




2
Chr. Hansen in brief
    A global supplier of bioscience based ingredients to the food,
    health, pharmaceutical and agricultural industries

    Founded in 1874 in Copenhagen by Danish pharmacist
    Christian D.A. Hansen

    Listed on NASDAQ OMX Copenhagen

    2011/12 turnover EUR 699 million

    Organic growth ambitions of 7-9% annually

    Approx. 2,450 employees




3
Chr. Hansen globally
    Customers in approx. 140 countries

    Production facilities on five
    continents

                                         Number of employees1 2011/12             Revenue 2011/12

                                                   South America                       South America

                                                                11%                                 13%
                                          North America
                                                          14%                      North
                                                                                   America
                                                                                             24%
                                         Asia-pacific,
                                         Middle-East &   9%                                               46%
                                         Africa
                                                                        66%                                 Europe
                                                                         Europe
                                                                                                17%
                                                                                    Asia-pacific,
                                                                                    Middle-East &
                                                                                    Africa
    Subsidiaries and representative offices in 30 countries



4
Cultures & Enzymes Division
                frozen culture




Our business                     Health & Nutrition Division
Company presentation




                                 Natural Colors Division
Cultures & Enzymes
Division
    We develop and produce cultures,
    enzymes and probiotics for the dairy
    industry in particular

    … and for the food industry in
    general – e.g. for wine and meat

    Our ingredients determine taste,
    appearance, nutritional value and
    health benefits

    We are the global market leader in
    dairy ingredients

    Actually… every other cheese in the
    world contains our enzymes



6
Health & Nutrition
Division
    We develop and produce products for
    dietary supplements, pharmaceuticals,
    infant formula and animal feed

    Our key offering is probiotic cultures
    with documented effect
      For humans
      For animals

    We believe in strong research and
    documentation through clinical study
    program trials



7
Natural Colors
Division
    We develop and produce natural colors
    for the food industry

    We focus on natural colors in:
      Beverages
      Confectionery
      Ice cream
      Dairy and fruit preparations
      Prepared foods

    Our colors originate from natural sources
    like berries, roots and seeds

    We are global frontrunners in
    encapsulation and stabilization
    techniques



8
A company built
on science
                                                       Customer Driven Innovation:
    ~7% of turnover is spent on R&D
                                                       Strong link between Business objectives and
    14% of employees work in R&D
                                                       available R&D Competences & Technologies
    Major basic research facilities in Denmark

    Development centers in Denmark, USA, France,
    Germany and Singapore

    19 application centers worldwide



                                                   pellet freezing




9
Expectations to a Food KIC
     Innovation



Knowledge Community
Innovation
     Innovation is about value creation through solving problems.

     Innovation = Creative capacity x Implementation capacity
       Creative capacity = Systematic approach to solve a defined problem
       Implementation capacity = Realization of solution & Commercialization

     A Food KIC should stimulate an entrepreneurial environment through
     program activities

     Facilitate establishment of models for financing of new innovations based
     on high risk projects




11
Knowledge
     Focus on creating world-class research activities within
     relevant areas

          Prepare catalogue over research strong points within
          involved partners

          Input from industry to prepare university relevant
          research programs

     Secure education of highly qualified scientists and personnel

          Facilitate interchange of employees between
          Universities and Industry




12
Community
     Establish unique research infra structures that will
     stimulate innovation activities
       National, Regional and International structures
       to facilitate innovation
       Integrate relevant existing research infra
       structures in Food KIC
       Create a win-win environment among project
       partners from Universities and Industry
             Fair IPR and royalty programs

     Create platforms where Regulatory bodies
     become included in KIC activities
       Current regulations may prevent innovation if
       not in accordance with latest scientific insights



13
Collaboration structure
     To be innovative require the ability to seize the
     right business opportunities when they occur

           This require competences based on both
           long term as well as short term research
           activities.

           Industry will abandon projects if conditions
           for business opportunities changes

     This calls for a flexible collaboration structure in
     the KIC projects




14
Mowing forward
     Innovation is a prerequisite to survive in todays business
     environment

     Innovation require dedicated and collaborative research
     structures to materialize

     Establishment of the planned Food KIC will facilitate the
     creation of an unique environment for Innovation for the
     European food industry




15

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Foodbest network meeting Esben Laulund Food KIC 130405

  • 1. Expectations for a KIC in the food innovation landscape frozen culture Esben Laulund, SVP Innovation, Chr. Hansen natural red chewable probiotic
  • 2. Today’s key points About Chr. Hansen Expectations to a Food KIC Moving forward 2
  • 3. Chr. Hansen in brief A global supplier of bioscience based ingredients to the food, health, pharmaceutical and agricultural industries Founded in 1874 in Copenhagen by Danish pharmacist Christian D.A. Hansen Listed on NASDAQ OMX Copenhagen 2011/12 turnover EUR 699 million Organic growth ambitions of 7-9% annually Approx. 2,450 employees 3
  • 4. Chr. Hansen globally Customers in approx. 140 countries Production facilities on five continents Number of employees1 2011/12 Revenue 2011/12 South America South America 11% 13% North America 14% North America 24% Asia-pacific, Middle-East & 9% 46% Africa 66% Europe Europe 17% Asia-pacific, Middle-East & Africa Subsidiaries and representative offices in 30 countries 4
  • 5. Cultures & Enzymes Division frozen culture Our business Health & Nutrition Division Company presentation Natural Colors Division
  • 6. Cultures & Enzymes Division We develop and produce cultures, enzymes and probiotics for the dairy industry in particular … and for the food industry in general – e.g. for wine and meat Our ingredients determine taste, appearance, nutritional value and health benefits We are the global market leader in dairy ingredients Actually… every other cheese in the world contains our enzymes 6
  • 7. Health & Nutrition Division We develop and produce products for dietary supplements, pharmaceuticals, infant formula and animal feed Our key offering is probiotic cultures with documented effect For humans For animals We believe in strong research and documentation through clinical study program trials 7
  • 8. Natural Colors Division We develop and produce natural colors for the food industry We focus on natural colors in: Beverages Confectionery Ice cream Dairy and fruit preparations Prepared foods Our colors originate from natural sources like berries, roots and seeds We are global frontrunners in encapsulation and stabilization techniques 8
  • 9. A company built on science Customer Driven Innovation: ~7% of turnover is spent on R&D Strong link between Business objectives and 14% of employees work in R&D available R&D Competences & Technologies Major basic research facilities in Denmark Development centers in Denmark, USA, France, Germany and Singapore 19 application centers worldwide pellet freezing 9
  • 10. Expectations to a Food KIC Innovation Knowledge Community
  • 11. Innovation Innovation is about value creation through solving problems. Innovation = Creative capacity x Implementation capacity Creative capacity = Systematic approach to solve a defined problem Implementation capacity = Realization of solution & Commercialization A Food KIC should stimulate an entrepreneurial environment through program activities Facilitate establishment of models for financing of new innovations based on high risk projects 11
  • 12. Knowledge Focus on creating world-class research activities within relevant areas Prepare catalogue over research strong points within involved partners Input from industry to prepare university relevant research programs Secure education of highly qualified scientists and personnel Facilitate interchange of employees between Universities and Industry 12
  • 13. Community Establish unique research infra structures that will stimulate innovation activities National, Regional and International structures to facilitate innovation Integrate relevant existing research infra structures in Food KIC Create a win-win environment among project partners from Universities and Industry Fair IPR and royalty programs Create platforms where Regulatory bodies become included in KIC activities Current regulations may prevent innovation if not in accordance with latest scientific insights 13
  • 14. Collaboration structure To be innovative require the ability to seize the right business opportunities when they occur This require competences based on both long term as well as short term research activities. Industry will abandon projects if conditions for business opportunities changes This calls for a flexible collaboration structure in the KIC projects 14
  • 15. Mowing forward Innovation is a prerequisite to survive in todays business environment Innovation require dedicated and collaborative research structures to materialize Establishment of the planned Food KIC will facilitate the creation of an unique environment for Innovation for the European food industry 15