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2010-04-20 Presentation at media and analyst meeting
1. Axfood AB
Interim Report
January – March, 2010
1
2. Axfood AB January - March 2010
• Consolidated sales:
SEK 8,210 m (7,682), an
increase of 6.9%
• Good operating profit:
SEK 245 m (234)
• Operating margin: 3.0% (3.0)
• Positive operating margin
in all operations
2
3. Willys January - March 2010
• Continued good performance
– Stable earnings and sales
• High pace in store establishments
– Six new stores
• Leading position in soft discount
– Attractive mix between price &
assortment
• 2010: Sales growth and increased
number of stores
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4. Hemköp January - March 2010
• Positive result despite increased
marketing costs
– New price strategy
– Increased marketing activities
• 2010: Focus on improving sales and
profitability
– Close or convert five stores
– Reduction with 14 positions at head office
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5. PrisXtra January - March 2010
• Positive development in four of six
stores
• Decrease in sales for two stores
due to major road work
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6. Axfood Närlivs January - March 2010
• Stable development and good
profitability
• Good service level: 97.7%
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7. Dagab January - March 2010
• Good service level: 97.2%
• Good cost control
• Cooperation with Vi-stores continues
to work well
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8. New union agreement
• New union agreement over 24 months
– Increased total costs by 3.85 % for
retail employees
– Increased total costs by 3.55 % for
whole sale employees
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9. New business system
• Implementation on track
– Accounting system successfully
installed
• Project will run over five years
• Total investment of
SEK 500 - 600 m
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10. Market trends 2010
• Continued high price competition
• Price conscious customers
• Price inflation remain at low levels
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11. Strategy for profitable growth
• Good cost control and efficiency
• High pace in store establishments
• Develop the various concepts
• Optimize store operations
• Stimulate sales
• Develope private label
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12. Axfood´s goal for 2010
To achieve an operating profit
at least in level with 2009
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13. Financial
Performance
January – March, 2010
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14. Axfood AB January - March 2010
• Good profitability
• Good sales performance
• Positive operating margin
in all operations
Group, SEK m 2010 2009 Change
Net sales 8,210 7,682 +6.9 %
Operating profit 245 234 + 4.7%
Operating margin 3.0% 3.0% -
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17. PrisXtra January - March 2010
• Positive development in four of six
stores
• Decrease in sales for two stores due
to major road work
PrisXtra, SEK m 2010 2009 Change
Net sales 171 182 - 6.0%
Operating profit 3 0 -
Operating margin 1.8% 0,0% -
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18. Axfood Närlivs January - March 2010
• Good development in distributed
sales
– Increased by 6.6 %
Axfood Närlivs, SEK m 2010 2009 Change
Net sales 1,293 1,254 + 3.1%
Operating profit 14 16 -
Operating margin 1.1% 1.3% -
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19. Dagab January - March 2010
• Good development in distributed sales
– Increased by 10.4 %
• Stable results
Dagab, SEK m 2010 2009 Change
Net sales 6,179 5,669 + 9.0%
Operating profit 30 24 -
Operating margin 0.5% 0.4% -
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20. Other January - March 2010
• Sales: SEK 993 m (728)
• Operating profit: SEK 25 m (14)
• Higher results are due to increased
volumes in fruit & vegetables and
centrally packed meat
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23. Financial targets & dividend policy
• Axfood´s goal for 2010 is to achieve
an operating profit at least in level
with 2009
• Equity ratio of at least 25%
• Shareholder dividend of at least 50%
of profit for the year after tax
• For 2009 a dividend of SEK10 (8) was
paid out
• Long term target for operating margin:
4%
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