1. 1
Axfood AB
Interim Report
July – Sept, 2010

2. 2
Axfood AB July - September 2010
• Consolidated sales:
SEK 8,582 m (8,049), an
increase of 6.6%
• Stable operating profit:
SEK 364 m (335)
• Operating margin: 4.2% (4.2)
• Strengthened market
position

3. 33
Willys July - September 2010
• Strong results
• Like for like sales affected by
increased competition
• Increased market share
– Growing number of stores
– Improved shopping experience
– Right price and product mix

4. 4
Hemköp July - September 2010
• Positive result and like for like sales
– Successful marketing strategy
• New store in Stockholm City
• Targeting EBIT margin of 1% 2010

5. 5
PrisXtra July - September 2010
• Unsatisfying development
• Decrease in sales for two stores
due to major road work
• Possible positive EBIT for full year

6. 6
Axfood Närlivs July - September 2010
• Increased sales and market
share
– New agreements
– Relatively good weather
conditions
• EBIT margin affected by
competitive market

7. 7
Dagab July - September 2010
• Strong service level
• Good cost control
• Satisfying cooperation with Vi-stores

8. 8
Market trends 2010
• Soft food retail market
• Food price inflation on moderate
levels
• Fierce competition
• Price conscious customers

9. 9
Strategy for profitable growth
• Develop the various concepts
• Optimize store operations
• Stimulate sales growth
• Good cost control and efficiency

10. 10
Axfood´s goal for 2010
To achieve an operating profit at
least at the same level as in 2009

11. 11
Financial
Performance
July – Sep, 2010

12. 12
Axfood AB July - September 2010
• Strong result
– Improved operating profit
-
+ 8.7%
+6.6 %
Change
4.2%4.2%Operating margin
335364Operating profit
8,0498,582Net sales
20092010Group, SEK m

13. 13
Willys July - September 2010
+6.3%
Sales Operating profit
-10 -09
4,3844,660
-10 -09
214 199
4.5%4.6%Operating margin
20092010
+7.5%

14. 14
Hemköp July - September 2010
Sales Operating profit
-10 -09
1,2761,164
-10 -09
19
11
1.5%0.9%Operating margin
20092010

15. 15
PrisXtra July - September 2010
• Decrease in sales for two stores due
to major road work
-
0
- 7.7%
Change
0.6%0.7%Operating margin
11Operating profit
155143Net sales
20092010PrisXtra, SEK m

16. 1616
Axfood Närlivs July - September 2010
• Good sales developement
– Distributed sales increased by 5.5 %
-
- 17.3%
+ 4.9%
Change
3.5%2.7%Operating margin
5243Operating profit
1,4981,571Net sales
20092010Axfood Närlivs, SEK m

17. 17
Dagab July - September 2010
• Stable development
• Good cost control and efficiency
-
+ 52.6%
+ 7.3%
Change
0.6%0.9%Operating margin
3858Operating profit
5,9466,379Net sales
20092010Dagab, SEK m

18. 18
Other July - September 2010
• Sales: SEK 993 m (845)
• Operating profit: SEK 37 m (26)

19. 19
Key ratios January - September 2010
• Balance sheet, total: SEK 7,367 m
(7,025)
• Cash flow operating activity:
SEK 1 037 m (1 017)
• Capex: SEK 592 m (439)
• Equity ratio: 37.2% (34.6)

20. 20
Financial targets & dividend policy
• Axfood's goal for 2010 is to achieve
an operating profit at least at the
same level as in 2009
• 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%

21. 21
Summary
• Stable development
• Strong result
• Increased market share

22. 22
Time for
questions!