Axfood Q4 2010 presentation

1. Axfood AB
Jan – Dec, 2010
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2. Objectives and outcome 2010
Objectives 2010 Outcome
Operating profit at least
Operating profit +7.2%
in level with 2009
Profitable growth Sales growth +5.8%
The board proposes
Dividend to shareholders
dividend of SEK 12 per
of at least 50% of profit
share - 73%
after tax
of profit after tax
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3. Willys January - December 2010
• Strong results and stable sales
development
• Increased market share
– Growing number of stores
– Improved shopping experience
– Right price and product mix
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4. Hemköp January - December 2010
• Positive result and like for like sales
– Successful marketing strategy
• New store in Stockholm City
• EBIT margin 0.9%
• Targeting EBIT margin of 2% 2011
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5. PrisXtra January - December 2010
• Unsatisfying development
• Two stores affected by major road
work
• Result affected by one time cost of
SEK 14 m
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6. Axfood Närlivs January - December 2010
• Increased sales and market
share
– New agreements
• EBIT margin in line with
expectations
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7. Dagab January - December 2010
• Strong service level
• Good cost control
• Satisfying cooperation with
the Vi-stores
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8. Market trends 2011
• Continued tough competition
• Price conscious customers
• Average 2-3 % food price inflation
• Decent outlook for Swedish
economy
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9. Offensive investment strategy 2011
• Approximately 15 new stores
• Modernization of about 40 stores
• Continued implementation of new
business system
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10. Strategy for profitable growth
• Optimize store operations
• Stimulate sales growth
• Good cost control and efficiency
• Increased privat label share
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11. Axfood´s goal for 2011
To achieve an operating profit at
least at the same level as 2010
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12. Financial overview
Jan – Dec, 2010
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13. Axfood AB January - December 2010
• Best result ever
• Good sales development
Group, SEK m 2010 2009 Change
Net sales 34,260 32,378 +5.8%
Operating profit 1,209 1,128 +7.2%
Operating margin 3.5% 3.5% -
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14. Willys January - December 2010
Sales Operating profit
+5.8%
+5.6%
18,613 17,589
772 731
-10 -09 -10 -09
2010 2009
Operating margin 4.1% 4.2%
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15. Hemköp January - December 2010
Sales Operating profit
+60.7%
4,978 5,335
45 28
-10 -09 -10 -09
2010 2009
Operating margin 0.9% 0.5%
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16. PrisXtra January - December 2010
• Decrease in sales for two stores due
to major road work
• Result affected by one time cost of
SEK 14 m
PrisXtra, SEK m 2010 2009 Change
Net sales 637 685 - 7.0%
Operating profit -5 6 -
Operating margin -0.8% 0.9% -
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17. Axfood Närlivs January - December 2010
• Good sales developement
– New agreements
Axfood Närlivs, SEK m 2010 2009 Change
Net sales 5,847 5,611 + 4.2%
Operating profit 113 132 - 14.4%
Operating margin 1.9% 2.4% -
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18. Dagab January - December 2010
• Stable development
• Good cost control and efficiency
Dagab, SEK m 2010 2009 Change
Net sales 25,701 24,052 + 6.9%
Operating profit 189 147 + 28.6%
Operating margin 0.7% 0.6% -
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19. Other January - December 2010
• Sales: 204 Mkr (174)
• Operating profit: 95 Mkr (84)
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20. Key ratios January - December 2010
• Balance sheet, total: SEK 7,664 m
(7,173)
• Cash flow operating activity:
SEK 1,365 m (1,558)
• Capex: SEK 862 m (633)
• Investment plan 2011:
SEK 900 - 1,000 m
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21. Financial targets & dividend policy
• Axfood's goal for 2011 is to achieve
an operating profit at least at the
same level as in 2010
• Equity ratio of at least 25%
• Shareholder dividend of at least 50%
of profit for the year after tax
• Long term target for operating
margin: 4%
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22. Summary
• Best result ever
• Profitable growth
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23. Time for
questions!
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