Axfood presentation Q3 2013

1. Axfood
July-September, 2013
Anders Strålman
CEO
1

2. Axfood July-September 2013
Net sales
• Net sales: SEK 9,465 m
(9,044) +4.7%
– Focus on strong customer offerings and
attractive stores
• Operating profit: SEK 382 m
(370) +3.2%
– Operating margin: 4.0% (4.1)
– Positive result for all business units
• Continued focus on implementation of new
business system
2

3. Willys July-September 2013
• Good sales growth: SEK 5,092 m
(4,818) +5,7%
– Like-for-like sales: +2.2%
– Successful customer programme had a
positive impact on sales
– More than 1 million members in the program
• Operating profit: SEK 219 m (215) 1.9%
– Operating margin: 4.3% (4.5)
– Five new stores
3
Net sales

4. Hemköp July-September 2013
• Net sales: SEK 1,341 m (1,338) 0.2%
– Like-for-like sales: 2.3%
• Improved operating profit: SEK 42 m (36)
– Operating margin: 3.1% (2.7)
• New digital customer programme launched in
October
• A number of stores are being
modernized
4
Operating margin

5. Axfood Närlivs July-September 2013
• Good sales growth: SEK 1,738 m (1,652)
+5.2%
– Favorable weather and strong campaign
offerings had a positive impact on sales
• Operating profit: SEK 52 m (50)
– Operating margin: 3.0% (3.0)
• Implementation of new business system
will start in Q4
5
Operating profit

6. Dagab July-September 2013
• Operating profit: SEK 32 m (47)
– Result affected by cost related to
implementation of the new business system
– System will be installed in the warehouse in
Gothenburg during Q4
6

7. Market outlook
• Uncertain development in Swedish
economy
• Stable growth in food retail industry
• Around 2 percent food price inflation
expected for the full year
7

8. Strategy for profitable growth
• Develop the various concepts
– Modernize both Willys and Hemköp stores
– Attractive customer offerings
• Development of customer
programme
• High level of private label share
• Continued implementation of new
business system
8

9. Axfood’s estimation 2013
Operating profit at least
at the same level as in 2012
9

10. Financial overview
July-September, 2013
Karin Hygrell Jonsson
CFO
10

11. Axfood July-September 2013
• Strong result and sales growth
Net sales, SEK m
Operating margin, %
Key ratios
Q3
2013
Q3
2012
Change
Net sales
9,465
9,044
4.7%
Change in like-for-like sales,
%
2.3%
0.0%
2.3
382
370
3.2%
4.0%
4.1%
-0.1
254
244
10
SEK m
9 044
9 252
8 950
9 557
4.1
9 465
4.0
3.4
2.8
Operating profit
2.8
Operating margin, %
Q3 -12
11
Q4-12
Q1-13
Q2-13
Q3-13
Number of stores,
Group-owned

12. Willys July-September 2013
• Good sales performance and stable earnings
Net sales, SEK m
Operating margin, %
Key ratios
4 927
4 919
5 174
4.5
4.1
3.9
5 092
4.3
3.5
Q3
2012
Change
Net sales
4 818
Q3
2013
5,092
4,818
5.7%
Change in like-for-like sales,
%
2.2%
-0.1%
2.3
219
215
1.9%
4.3%
4.5%
-0.2
184
172
12
SEK m
Operating profit
Operating margin, %
Q3 -12
12
Q4 -12
Q1-13
Q2-13
Q3-13
Number of stores

13. Hemköp July-September 2013
• Stable sales and improved result
Net sales, SEK m
Operating margin, %
Key ratios
Q3
2013
Q3
2012
Change
Net sales
1,341
1,338
0.2%
Change in like-for-like sales,
%, Group-owned
2.3%
0.2%
2.1
42
36
16.7%
3.1%
2.7%
0.4
70
111
67
114
3
-3
1 474
1 407
1 338
1 392
1 341
SEK m
Operating profit
3.9
3.2
2.7
3.1
2.1
Operating margin, %
Number of stores
Q3 -12
13
Q4 -12
Q1-13
Q2-13
Q3-13
Group-owned
Franchise

14. Axfood Närlivs July-September 2013
• Favorable summer weather had positive impact on sales
Net sales, SEK m
Operating margin, %
Key ratios
Q3
2013
Q3
2012
Change
Net sales
1,738
1,652
5.2%
Distributed sales
1,614
1,512
6.7%
52
50
4.0%
3.0%
3.0%
-
20
20
-
97.5
97.8
-0.3
SEK m
1 652
1 728
1 738
1 570
1 427
3.0
3.0
2.4
Operating profit
1.8
Operating margin, %
0.8
Q3 -12
Q4 -12
Q1-13
Number of stores,
Axfood Snabbgross
Q2-13
Q3-13
Delivery reliability, %
14

15. Dagab July-September 2013
• Increased costs due to implementation of the new
business system
– Will continue to affect the result during 2013
Net sales, SEK m
Operating margin, %
Key ratios
Q3
2013
Q3
2012
Change
Net sales
6,346
6,000
5.8%
Distributed sales
4,421
4,189
5.5%
32
47
-31.9%
0.5%
0.8%
-0.3
SEK m
6 000
0.8
6 348
6 194
6 400
6 346
0.7
Operating profit
0.5
0.5
Operating margin, %
0.2
Q3 -12
15
Q4 -12
Q1-13
Q2-13
Q3-13

16. Other July-September 2013
• Net sales: SEK 1,284 m (1,113), +15.4%
– Good sales development for fruits & vegetables
and meat
• Operating profit: SEK 37 m (22)
– Amortization of new business system with
SEK 17 m (15)
16

17. Key ratios January-September 2013
• Balance sheet, total: SEK 8,460 m (8,499)
• Cash flow operating activity: SEK 1,112 m
(1,385)
– Previous year was affected by lower tax payments
• Capex: SEK 551 m (679)
– Investment plan 2013: SEK 800-900 m
– Investment plan 2014: In level with 2013
Capital expenditure
SEK m
1 000
800
600
400
200
0
-09
17
-10
-11
-12

18. Financial targets & dividend policy
• Axfood's estimation is that operating
profit for 2013 will be at least at the same
level as in 2012
• Equity ratio of at least 25%
• Shareholder dividend of at least 50% of
profit for the year after tax
• Long term target for an operating margin
of 4%
18

19. Summary
• Good sales development and
result
– Increased market share
19

20. Q&A
20