Axfood interim report q3 2011

Interim Report Axfood AB – 1 January-30 September 2011

Interim Report Axfood AB (publ)

THIRD QUARTER SUMMARY
• Axfood’s consolidated sales for the period July–September totalled SEK 8,735 m (8,582),
an increase of 1.8%.
• Retail sales for Group-owned stores rose 0.1% during the period.
Like-for-like sales decreased by 1.2%.
• Operating profit for the period was SEK 370 m (364).
• Profit after financial items was SEK 362 m (357) for the period.
• Profit after tax for the period was SEK 267 m (262), and earnings per share were SEK 5.09
(5.00).
• The work on converting Vi stores to Hemköp has begun.
• Axfood Närlivs entered into a cooperation agreement with Svenska Statoil.
• Axfood’s goal for 2011 is to achieve an operating profit at least as the same level as 2010.

NO SIGNIFICANT EVENTS HAVE TAKEN PLACE AFTER THE BALANCE SHEET DATE

Key ratios
Change, Nine months Nine months Change, Full year
SEK m Q3 2011 Q3 2010
% 2011 2010 % 2010
Net sales 8,735 8,582 1.8 25,881 25,375 2.0 34,260
Operating profit 370 364 1.6 928 888 4.5 1,209
Operating margin, % 4.2 4.2 0.0 3.6 3.5 0.1 3.5
Profit after financial items 362 357 1.4 902 862 4.6 1,172
Profit after tax 267 262 1.9 665 635 4.7 862
Earnings per share, SEK1 5.09 5.00 1.8 12.67 12.10 4.7 16.42
Cash flow per share, SEK 0.1 -0.9 - -2.0 -1.8 -11.1 0.0
Cash flow from operating
6.9 6.3 9.5 19.1 19.8 -3.5 26.0
activities per share, SEK
Return on capital employed, %2 32.9 33.3 -0.4 32.9 33.3 -0.4 33.2
Return on shareholders' equity, %2 31.0 32.3 -1.3 31.0 32.3 -1.3 30.7
Shareholders' equity per share, SEK3 - - - 57.35 52.30 9.7 56.64
Equity ratio, % - - - 38.0 37.2 0.8 38.8

1) Before and after dilution.
2) Moving 12-month figures.
3) Net asset value per share corresponds to shareholders' equity per share.
For further information, please contact: The information in this interim report is such
Anders Strålman, President and CEO, mobile +46-70-293 16 93. that Axfood is required to disclose in accord-
Karin Hygrell-Jonsson, CFO, mobile +46-70-662 69 70. ance with the Securities Market Act.
Anne Rhenman-Eklund, Head of Corporate Communications, +46-8-553 998 13, Submitted for publication at 7.30 a.m. (CET)
mobile +46-70-280 64 59. on 20 October 2011.

1


CEO'S COMMENTS
For the third quarter of 2011, Axfood presented yet another favourable result in a business environment
characterized by uncertainty. Again, our stable profitability development testifies to Axfood's efficiency and
good cost control.

Favourable results overall
Hemköp continues to strengthen its earnings, with good profitability and positive like-for-like sales. With
the structural measures now completed, the focus is on driving growth, renewing the stores and
strengthening the brand. A key part of the latter are the agreements that have been signed with most of
the Vi retailers, under which Hemköp is being expanded by roughly 50 proprietor-run stores during the
autumn. The work on converting the stores is expected to be completed by early December. Hemköp's
goal to achieve a 2% operating margin for the full year 2011 and 3% for 2012 remains.

Willys showed continued stable development with good margins despite establishment of a number of new
stores and the high pace of remodelling. The renewal programme aimed at improving customers' shopping
experience is now beginning to generate results. At the same time, the like-for-like sales trend has been
unsatisfactory. This can be attributed in part to dampened growth during the year for the stores that have
not yet been renewed. It is for this reason that the pace of store modernization will remain undiminished in
2012.

PrisXtra's accumulated result is in line with plan, but sales continue to be affected by extensive road work.
The goal remains to attain a positive result for the full year.

For Axfood Närlivs, sales were very favourable for the wholesale, cash & carry and renewed e-commerce
businesses. In addition, during the quarter a new two-year agreement was signed with Svenska Statoil on
the supply of newsstand and food retail products.

Dagab continues its efficient and stable performance with good cost control and high delivery reliability.
Parallel with this, Dagab's extensive environmental programme continues in inventorying, transports and
alternative energy sources.

Market outlook
The market outlook and growth in the food retail sector are difficult to judge amidst the prevailing
turbulence. The economic crisis in several EU countries and the USA is giving rise to considerable anxiety
and elevated caution among households and businesses, who fear an economic downturn. This may
contribute to more price consciousness and restraint among customers, which would benefit private label
products as well as low-price alternatives. We are also facing an approaching contract negotiation, whose
outcome is uncertain.

Ambitious pace of investment and good cost control to ensure profitable growth
Axfood's strategic direction remains unchanged, and during the rest of the year we will continue to focus
on greater efficiency and good cost control in order to parry uncertainty in the future. Our goal is also to
offer all our customers alternatives that give them value for their money. At the same time, we will maintain
a high pace of modernization and development of our various concepts. Capital expenditures for 2011 are
expected to amount to SEK 900–1,000 m (862), and the same level is anticipated for 2012.

Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010.

Anders Strålman
President and CEO
2


SALES, AXFOOD GROUP
Third quarter
Consolidated wholesale and retail sales for the Axfood Group totalled SEK 8,735 m (8,582) during the third
quarter, an increase of 1.8%. Store sales for the Axfood Group (wholly owned stores and Hemköp
franchises) totalled SEK 6,976 m (6,926), an increase of 0.7%. Sales for Axfood-owned retail operations
rose 0.1% during the third quarter, with a 1.2% drop in like-for-like sales. Axfood's private label share was
23.1% (21.6%) as of September.

Nine months
Consolidated wholesale and retail sales for the Axfood Group totalled SEK 25,881 m (25,375) for the
period, an increase of 2.0%. Store sales for the Axfood Group (wholly owned stores and Hemköp
franchises) totalled SEK 20,911 m (20,789), an increase of 0.6%. Sales for Axfood-owned retail operations
rose 0.4% during the period, with a 1.0% decrease in like-for-like sales.

Net sales per operating segment
Nine months Nine months
SEK m Q3 2011 Q3 2010 2010
2011 2010
Hemköp 1,143 1,164 3,532 3,667 4,978
Willys 4,706 4,660 14,056 13,791 18,613
PrisXtra 123 143 409 475 637
Axfood Närlivs 1,714 1,571 4,775 4,355 5,847
Dagab 6,427 6,379 19,191 18,980 25,701
Other1 1,038 993 3,140 3,012 4,052
Internal sales
Dagab -5,425 -5,381 -16,210 -16,026 -21,694
Axfood Närlivs -3 -6 -18 -18 -26
Other -988 -941 -2,994 -2,861 -3,848
Total 8,735 8,582 25,881 25,375 34,260
1) Includes joint-Group support functions, such as purchasing coordination, IT and corporate offices.

Retail sales, own and franchise stores
Like-for-like Nine months Like-for-like
SEK m Q3 2011 %1) sales, %1) 2011 % 1) sales, %1)
Hemköp 1,130 -1.8 0.6 3,493 -3.7 0.8
Hemköp franchises 1,017 4.6 1.7 2,953 2.0 1.9
Hemköp total 2,147 1.1 1.1 6,446 -1.2 1.3
Willys total 4,706 1.0 -1.3 14,056 1.9 -1.1
PrisXtra total 123 -14.0 -8.9 409 -13.9 -9.9
Total 6,976 0.7 -0.8 20,911 0.6 -0.6
1) Percentage change compared with the corresponding period a year ago.

Change in store structure, nine months 2011
New establish- Conversions
Dec. 2010 ment Acquisitions Sales/ closures to/from September 2011
Hemköp 65 1 -4 -1 61
Willys1) 160 4 2 -1 1 166
PrisXtra 5 5
Total, Group-owned 230 4 3 -5 - 232

Hemköp franchises 82 18 -3 97

1)
Of which, Willys Hemma 41 1 -1 1 42

3


EARNINGS, AXFOOD GROUP

Third quarter
Operating profit for the quarter was SEK 370 m (364). The operating margin was 4.2% (4.2%). Net
financial items totalled SEK -8 m (-7), and profit after financial items was SEK 362 m (357). The margin
after financial items was 4.1% (4.2%). Profit after tax was SEK 267 m (262).
Axfood has no significant transactions with related parties, other than transactions with subsidiaries.

Nine months
Operating profit for the period was SEK 928 m (888). The operating margin was 3.6% (3.5%). Net financial
items for the period totalled SEK -26 m (-26), and profit after financial items was SEK 902 m (862). Profit
after tax was SEK 665 m (635).

Operating profit for the period, broken down by operating segment
SEK m Q3 2011 Q3 2010 2010
2011 2010
Hemköp 34 11 70 27 45
Willys 212 214 574 576 772
PrisXtra -1 1 10 1 -5
Axfood Närlivs 44 43 86 91 113
Dagab 56 58 138 122 189
Other1 25 37 50 71 95
Operating profit for the period, total2 370 364 928 888 1 209
1) Includes joint-Group support functions, such as purchasing coordination, IT and corporate offices. For the nine-month period, "Other” also
includes charges for, among other things, amortization of surplus value pertaining to the acquisition of PrisXtra and depreciation of SEK 24 m
(10) pertaining to the new business system.
2) Net financial items are not distributed per operating segment.

CAPITAL EXPENDITURES
Total capital expenditures during the period January–September amounted to SEK 696 m (592), of which
SEK 49 m (6) pertained to acquisitions of businesses. In addition, SEK 345 m (309) pertained to
investments in non-current assets in retail operations, SEK 78 m (71) to investments in non-current assets
in wholesale operations, and SEK 156 m (114) to IT development.

FINANCIAL POSITION
Cash flow from operating activities for the first nine months of the year before paid tax was SEK 1,279 m
(1,309). Paid tax amounted to SEK -275 m (-272). Cash and cash equivalents held by the Group (fixed-
income investments) amounted to SEK 211 m, compared with SEK 315 m in December 2010. Interest-
bearing liabilities and provisions totalled SEK 1,043 m at the end of the period, compared with SEK 840 m
in December 2010. Interest-bearing net debt was SEK 832 m at the end of the period, compared with
SEK 525 m in December 2010. Payout of the shareholder dividend affected cash flow by SEK -630 m
(-525), and net capital expenditures affected cash flow by SEK -664 m (-567).
The equity ratio was 38.0%, compared with 38.8% as per December 2010.
Capital expenditures*, depreciation/
Equity ratio, % Debt-equity ratio, multiple
amortization, SEK m
50 1.0
250
38.8 38.0
40 37.2 0.8
34.4 200
32.6

30 0.6
0.5 150

0.4 0.4
20 0.4
0.3 0.3 100

10 0.2 50

0 0.0 0
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

Capital expenditures* Deprec./Amortization
* Excluding goodwill

4


THE SWEDISH FOOD RETAIL MARKET
According to Statistics Sweden's retail trade index for August, accumulated sales for the food retail
segment rose 1.2% since the start of the year in current prices. In fixed prices, adjusted for price and
calendar effects, volume decreased by 0.1%.

STORE OPERATIONS

Willys
Third quarter
Willys continued its stable development during the quarter, with good profitability. Sales amounted to
SEK 4,706 m (4,660), an increase of 1.0% compared with a year earlier. Like-for-like sales decreased by
1.3%. Sales were affected by competition from new establishment and dampened growth for stores that
have not yet been modernized. Operating profit amounted to SEK 212 m (214), a decrease of 0.9%. The
operating margin was 4.5% (4.6%).
The private label share as of September was 25.3% (24.4%) for Willys and 29.0% (28.0%) for Willys
Hemma.
As part of an effort to improve the shopping experience for customers and boost sales, modernization of
stores continued at a high pace. Four stores were adapted to the new generation of Willys during the
period, which currently comprises 70 stores. An additional 40 stores will be modernized in the years
ahead. During the third quarter, a Willys store was established in Eslöv, and a store was acquired in
Sundbyberg and opened with the Willys profile.

Nine months
Willys' sales during the period January–September amounted to SEK 14,056 m (13,791), an increase of
1.9% compared with a year earlier. Like-for-like sales decreased during the same period by 1.1%.
Operating profit for the first nine months of the year totalled SEK 574 m (576), and the operating margin
was 4.1% (4.2%).
During the period, three Willys stores and one Willys Hemma were established. Two stores were
acquired and opened with the Willys profile. An additional store was converted from Hemköp to Willys
Hemma, and one Willys Hemma store was sold. Willys thereafter comprises 166 wholly owned stores, of
which 42 are Willys Hemma.

Sales, SEK m, and operating margin, % Key ratios
6,000 8
Nine Nine
4,822 7 Q3 Q3 months months
5,000 4,660 4,805 4,706
4,545 SEK m 2011 2010 2011 2010 2010
6
4,000 Net sales 4,706 4,660 14,056 13,791 18,613
5
4.6 4.5
4.1 4.3 Change in like-for-like sales, % -1.3 -0.2 -1.1 0.1 0.4
3,000 4
3.5
3 Operating profit 212 214 574 576 772
2,000
2 Operating margin, % 4.5 4.6 4.1 4.2 4.1
1,000 Number of Group-owned stores - - 166 159 160
1
Average number of employees
0 0 during the period - - 3,359 3,185 3,266
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Private label share (Willys/Willys
Hemma) - - 25.3/29.0 24.4/28.0 24.0/28.7

5


Hemköp

Third quarter
Hemköp is once again showing stronger earnings and stable like-for-like sales. Like-for-like sales for
Group-owned stores rose 0.6% during the period.
Sales for Hemköp's stores – both Group-owned and franchises – rose 1.1% during the third quarter.
Sales for Group-owned stores amounted to SEK 1,130 m (1,151), a decrease of 1.8%. Compared with the
same period a year ago, sales were affected by store closures or conversions. Sales for franchise stores
amounted to SEK 1,017 m (972), an increase of 4.6%, with a 1.7% increase in like-for-like sales.
Operating profit for the third quarter was SEK 34 m (11). The operating margin for the period was 3.0%
(0.9%). Profit was favourably affected by SEK 4 m pertaining to a reversal of structural costs for store
closures that were previously charged against the first quarter.
Hemköp's private label share (including franchise stores) was 17.6% (14.9%) as of September.
The number of loyalty cards in issue has been rising steadily and amounted to 497,000 at the end of the
period. Loyalty cardholders have considerably higher average purchases than other customers, which is
why the loyalty card plays a key role in strengthening customer loyalty and growing sales.
The work on converting Vi stores to Hemköp was begun during the quarter. To date, 17 stores have
been converted to Hemköp franchises, which means that the chain now comprises 61 wholly owned stores
and 97 franchise stores. In all, some 50 Vi stores will be converted to proprietor-run Hemköp stores. This
is expected to be completed by the start of December, thereby giving Hemköp the opportunity to
strengthen its brand and build a larger, stronger and more distinctive grocery chain.

Nine months
Like-for-like sales for Group-owned stores rose 0.8% during the period. Sales for Hemköp's stores – both
Group-owned and franchises – decreased by 1.2% during the period January–September. Sales for
Group-owned stores amounted to SEK 3,493 m (3,628), a decrease of 3.7%. Compared with the same
period a year ago, total sales were negatively affected by changes in the number of stores.
Sales for franchise stores amounted to SEK 2,953 m (2,895), an increase of 2.0%, with a 1.9% increase
in like-for-like sales.
Operating profit for the period January–September was SEK 70 m (27). The operating margin for the
period was 2.0% (0.7%). Operating profit was affected by one-time costs of SEK 8 m (6) associated with
store closures.
To create further conditions for profitable growth, Hemköp has initiated modernization and renovation of
its stores, involving 10–20 units during the year.
During the first nine months of the year, one store was acquired and four were closed. One store was
converted to Willys Hemma. Also during the period, 17 franchise stores were established and one was
closed. Hemköp had a total of 158 stores at the end of the period, of which 61 are Group-owned.

Nine Nine
1,600 3.0 3
Q3 Q3 months months
1,311
SEK m 2011 2010 2011 2010 2010
2.5
1,164 1,184 Net sales 1,143 1,164 3,532 3,667 4,978
1,164 1,143
1,200
2
1.9 Change in like-for-like sales, % 0.6 3.3 0.8 1.9 2.3

800 1.5
Operating profit 34 11 70 27 45
1.4
Operating margin, % 3.0 0.9 2.0 0.7 0.9
1.1
1 Number of Group-owned stores - - 61 66 65
0.9
400 Average number of employees
0.5 during the period - - 1,360 1,402 1,422
Private label share - - 17.6 14.9 16.8
0 0
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

6


PrisXtra

Third quarter
PrisXtra's sales during the third quarter amounted to SEK 123 m (143), a decrease of 14.0%. Like-for-like
sales decreased by 8.9% during the period. Operating profit was SEK -1 m (1), and the operating margin
was -0.8% (0.7%). The goal is to achieve a positive operating result for the full year.
As previously, the two largest stores continue to be hurt by traffic re-routing and roadwork associated
with construction of the Norra länken motorway in Stockholm. These store locations have strategic
importance over time, however.

Nine months
PrisXtra's sales during the period January–September amounted to SEK 409 m (475), a decrease of
13.9%. Like-for-like sales decreased by 9.9% during the period. Operating profit for the period January–
September was SEK 10 m (1), and the operating margin was 2.4% (0.2%).

Nine Nine
200 Q3 Q3 months months
9
SEK m 2011 2010 2011 2010 2010
162
144 7 Net sales 123 143 409 475 637
143 142

4.9 123 5
Change in like-for-like sales, % -8.9 -7.7 -9.9 -7.2 -7.0
2.8 3
100 Operating profit -1 1 10 1 -5
0.7 1 Operating margin, % -0.8 0.7 2.4 0.2 -0.8
-0.8 -1 Number of Group-owned stores - - 5 6 5
-3 during the period - - 138 164 164
-3.7
0 -5
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

AXFOOD WHOLESALING

Dagab

Third quarter
Dagab had stable performance during the quarter, with good cost control and efficiency. Sales during the
third quarter amounted to SEK 6,427 m (6,379). Operating profit was SEK 56 m (58), and the operating
margin was 0.9% (0.9%).

Nine months
Dagab's sales for the period January–September amounted to SEK 19,191 m (18,980). Operating profit for
the period was SEK 138 m (122), and the operating margin was 0.7% (0.6%).

Nine Nine
8,000 1.5 Q3 Q3 months months
6,721 SEK m 2011 2010 2011 2010 2010
7,000 6,623 6,427
6,379
6,141 Net sales 6,427 6,379 19,191 18,980 25,701
6,000
1.0 1 Distributed sales 4,322 4,287 12,921 12,771 17,408
5,000 0.9 0.9 Operating profit 56 58 138 122 189
4,000
0.7 Operating margin, % 0.9 0.9 0.7 0.6 0.7
0.6
3,000 Average number of employees
0.5
during the period - - 940 925 932
2,000
Delivery reliability, % 97.0 96.7 96.9 97.1 97.2
1,000

0 0
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

7


Axfood Närlivs

Third quarter
Axfood Närlivs had continued favourable sales growth in all parts of its business. Sales during the third
quarter amounted to SEK 1,714 m (1,571), an increase of 9.1%. The favourable performance can be
credited in part to new agreements and good growth for e-commerce.
Operating profit for the third quarter was SEK 44 m (43), and the operating margin was 2.6% (2.7%).
During the period, a new e-commerce portal was launched for the Axfood Snabbgross stores. The
e-commerce venture is part of an effort to further improve customer service and grow sales.
A new two-year agreement was reached with Svenska Statoil. This collaboration, which covers the
supply of newsstand and food retail products, will commence on 1 January 2012.

Nine months
Axfood Närlivs' sales during the period January–September amounted to SEK 4,775 m (4,355), an
increase of 9.6%. Operating profit for the period amounted to SEK 86 m (91), and the operating margin
was 1.8% (2.1%).

Nine Nine
2,000 4 Q3 Q3 months months
1,714 SEK m 2011 2010 2011 2010 2010
1,691
1,571 Net sales 1,714 1,571 4,775 4,355 5,847
1,600 1,492
1,370 3
Distributed sales 1,500 1,355 4,185 3,761 5,070
2.7 2.6
1,200 Operating profit 44 43 86 91 113
2.1 Operating margin, % 2.6 2.7 1.8 2.1 1.9
2
800
1.5
Axfood Snabbgross, no. stores - - 20 19 19
1
during the period - - 717 643 667
400
Delivery reliability, % 97.4 96.8 97.6 97.3 97.4
0.4

0 0
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11

8


SIGNIFICANT RISKS AND UNCERTAINTIES
In the course of its business the Axfood Group is exposed to operational, strategic and financial risks.
Operational and strategic risks include business and liability risks, among others, while financial risks
include liquidity risk, interest rate risk and currency risk.
Axfood works continuously with risk identification and assessment. One of the most significant business
risks that Axfood has identified in its safety analysis work is a total loss, such as from a fire at one of the
central warehouses in Jordbro or Backa. Major emphasis is put on preventive work, and the organization
for this is well developed, as is the Company's planning to maintain operating continuity in the event of
unforeseen events.
For a thorough account of the risks that affect the Group, please refer to the 2010 Annual Report.

SEASONAL EFFECTS
Axfood has no significant seasonal variations.

ENVIRONMENTAL IMPACT
One of Axfood's strategic objectives is to actively conduct work for environmentally sustainable
development. In the day-to-day activities, sustainability aspects are integrated in product purchasing and
selection as well as in logistics, product flows and store operations. Priority areas for Axfood's
environmental sustainability work are energy use, transports and waste handling. All of these areas have
major bearing on Axfood's business and have large potential for improvement. One overall goal is to
reduce the climate impact of the Group's operations by 75% by 2020. The remainder of the Group's
environmental impact will be climate-compensated. Great progress was achieved toward this goal in 2010,
when the environmental impact was reduced by 60% through a changeover to renewable energy. In 2011,
work on energy efficiency improvement will continue to have high priority. A redoubled focus on recycling
has also been initiated, where most waste will either be recycled into raw material for the recycling industry
or converted to energy. A more detailed account of Axfood's work with environmental matters can be
found on Axfood's website: www.axfood.se.

PARENT COMPANY
Other operating revenue for the Parent Company during the period January–September amounted to SEK
132 m (129). After selling expenses, administrative expenses and other operating expenses, totalling SEK
187 m (165), and SEK -3 m (-6) in net financial items, the result after financial items was SEK -58 m
(-42). Capital expenditures during the period totalled SEK 2 m (3).
The Parent Company's interest-bearing net debt was SEK 675 m at the end of the period, compared
with SEK 931 m in December 2010. The Parent Company has no significant transactions with related
parties, other than transactions with subsidiaries.

ACCOUNTING POLICIES
Axfood applies International Financial Reporting Standards (IFRS) as endorsed by the European Union.
This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting, the Swedish
Annual Accounts Act, and recommendation RFR 2 – Reporting for Legal Entities, issued by the Swedish
Financial Reporting Board (RFR). In order to prepare the financial statements in accordance with IFRS,
the Board and Executive Committee make estimations and assumptions that affect the Company's result
and position as well as other disclosures in general. These estimations and assumptions are based on
historical experience and are reviewed on a regular basis. The accounting policies used by the Parent
Company and Group are unchanged compared with the most recently published annual report.

9


FORECAST
Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010.

NEXT REPORT
The year-end report for the period January–December 2011 will be released on 7 February 2012.

NOMINATING COMMITTEE
Shareholders who wish to submit nominations to the Nominating Committee ahead of Axfood's Annual
General Meeting on 14 March 2012 may do so by e-mail at: valberedning@axfood.se.

ANNUAL GENERAL MEETING
The Annual General Meeting will be held at 5 p.m. on 14 March 2012, in Stockholm. The 2011 Annual
Report will be published on 20 February 2012 on Axfood's website, at which time it will be available at
Axfood's head offices in Solna. In addition, printed versions will be distributed by post to shareholders
approximately one week before the Annual General Meeting upon request.

This interim report has been reviewed by the Company's auditors. The review report can be found on page
11.

Anders Strålman
President and CEO

PRESS RELEASES ISSUED DURING THE THIRD QUARTER
12 August 2011 Axfood supporting Save the Children's disaster relief in the horn of Africa
24 August 2011 Axfood Närlivs AB and Statoil Fuel & Retail enter cooperation agreement
29 August 2011 Hemköp growing in Stockholm (released only in Swedish)
28 September 2011 Axfood's annual report best

10


AUDITORS' REVIEW REPORT

To the Board of Directors of Axfood AB (publ)
Reg. no. 556542-0824

Introduction
We have reviewed the accompanying interim report for Axfood AB (publ) for the period 1 January–30
September 2011. The Board of Directors and the President are responsible for the preparation and
presentation of the interim report in accordance with IAS 34 Interim Financial Reporting and the Swedish
Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our
review.

Scope of review
We have conducted our review in accordance with the Swedish Standard on Review Engagements, SÖG
2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A
review of interim financial information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review has
another focus and is substantially less in scope than an audit conducted in accordance with International
Standards on Auditing (ISA) and other generally accepted auditing standards. The procedures performed
in a review to not enable us to obtain a level of assurance that would make us aware of all significant
matters that might be identified in an audit. Therefore, the conclusion based on a review does not provide
the same level of assurance as a conclusion based on an audit.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the interim report, in
all material respects, is not prepared for the Group in accordance with IAS 34 and the Swedish Annual
Accounts Act and for the Parent Company in accordance with the Swedish Annual Accounts Act.

Stockholm, 20 October 2011
KPMG AB

Thomas Thiel
Authorized Public Accountant

11


FINANCIAL STATEMENTS, GROUP

Condensed statement of comprehensive income, Group
Nine months Nine months Full year
SEK m Q3 2011 Q3 2010 2011 2010 2010

Net sales 8,735 8,582 25,881 25,375 34,260
Cost of goods sold -7,503 -7,424 -22,255 -21,940 -29,587
Gross profit 1,232 1,158 3,626 3,435 4,673

Selling/administrative expenses, etc. -862 -794 -2,698 -2,547 -3,464
Operating profit 370 364 928 888 1,209

Net financial items -8 -7 -26 -26 -37
Profit before tax 362 357 902 862 1,172

Tax -95 -95 -237 -227 -310
Profit for the period 267 262 665 635 862

Other comprehensive income
Change in fair value of forward exchange
2 -3 3 -2 0
contracts
Tax attributable to components in other
-1 1 -1 1 0
comprehensive income
Other comprehensive income for the period 1 -2 2 -1 0
Total comprehensive income for the period 268 260 667 634 862

Operating profit includes depreciation/amortization
150 140 436 414 555
of
Earnings per share, SEK 5.09 5.00 12.67 12.10 16.42

12


Condensed statement of financial position, Group
SEK m 30/9/2011 30/9/2010 31/12/2010
Assets
Goodwill 1,597 1,545 1,567
Other financial assets 32 33 32
Other non-current assets 2,568 2,261 2,364
Total non-current assets 4,197 3,839 3,963

Inventories 1,832 1,768 1,822
Accounts receivable – trade 674 614 660
Other current assets 997 925 904
Cash and bank balances 211 221 315
Total current assets 3,714 3,528 3,701

Total assets 7,911 7,367 7,664

Shareholders' equity and liabilities
Equity attributable to owners of the parent 3,009 2,744 2,972
Total shareholders' equity 3,009 2,744 2,972

Non-current interest-bearing liabilities 413 401 398
Other non-current liabilities 215 204 219
Total non-current liabilities 628 605 617

Current interest-bearing liabilities 630 414 442
Accounts payable – trade 2,212 2,118 2,208
Other current liabilities 1,432 1,486 1,425
Total current liabilities 4,274 4,018 4,075

Total shareholders' equity and liabilities 7,911 7,367 7,664

Contingent liabilities 16 18 18
Pledged assets 15 16 16

13


Condensed statement of cash flows, Group
SEK m 2011 2010 Full year 2010
Operating activities
Cash flow from operating activities before changes in working capital,
before paid tax 1,337 1,280 1,750
Paid tax -275 -272 -322
Changes in working capital -58 29 -63
Cash flow from operating activities 1,004 1,037 1,365
Investing activities
Acquisitions of operations, net -51 -9 -59
Acquisitions of non-current assets, net -613 -558 -771
Change in financial non-current assets, net - -2 -1
Cash flow from investing activities -664 -569 -831
Financing activities
Change in interest-bearing liabilities 186 -38 -10
Dividend paid out -630 -525 -525
Cash flow from financing activities -444 -563 -535

Cash flow for the period -104 -95 -1

Condensed statement of changes in equity, Group
SEK m 30/9/2011 30/9/2010 31/12/2010
Amount at start of year 2,972 2,635 2,635
Total comprehensive income for the period 667 634 862
Dividend to shareholders -630 -525 -525
Amount at end of period 3,009 2,744 2,972

Key ratios and other data, Group
2011 2010 Full year 2010
Operating margin, % 3.6 3.5 3.5
Margin after financial items, % 3.5 3.4 3.4
Equity ratio, % 38.0 37.2 38.8
Debt-equity ratio, net, multiple 0.3 0.2 0.2
Debt-equity ratio, multiple 0.4 0.3 0.3
Interest coverage, multiple 31.1 31.8 31.1
Capital employed, SEK m 4,052 3,559 3,812
Return on capital employed, % 32.9 33.3 33.2
Return on shareholders' equity, % 31.0 32.3 30.7
Capital expenditures, SEK m 696 592 862
Earnings per share, SEK1 12.67 12.10 16.42
Dividend per share, SEK - - 12.00
Shareholders' equity per share, SEK1, 2 57.35 52.30 56.64
Cash flow per share, SEK1 -2.0 -1.8 0.0
Number of shares outstanding1 52,467,678 52,467,678 52,467,678
Average number of employees during the period 6,948 6,771 6,895

1) The number of shares is the same before and after dilution. The average number of shares is the same as the number of shares
outstanding. Axfood has no holdings of treasury shares.
2) Net asset value per share corresponds to shareholders' equity per share.

Quarterly overview
Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11
Sales 8,431 8,210 8,583 8,582 8,885 8,257 8,889 8,735
Operating profit 290 245 279 364 321 241 317 370
Operating margin, % 3.4 3.0 3.3 4.2 3.6 2.9 3.6 4.2
Earnings per share, SEK1 3.83 3.31 3.79 5.00 4.32 3.28 4.30 5.09
Shareholders' equity per share, SEK1 50.22 43.55 47.34 52.30 56.64 47.93 52.24 57.35
Return on shareholders' equity, % 32.4 37.5 34.8 32.3 30.7 35.8 34.0 31.0
Cash flow from operating activities per
10.3 8.0 5.5 6.3 6.2 5.6 6.6 6.9
share, SEK
Capital expenditures 194 204 250 138 270 220 268 208

14


FINANCIAL STATEMENTS, PARENT COMPANY

Condensed income statement, Parent Company
SEK m Q3 2011 Q3 2010 2011 2010 Full year 2010
Net sales - - - - -
Selling/administrative expenses, etc. -13 -7 -55 -36 -47
Operating profit -13 -7 -55 -36 -47
Net financial items 0 -2 -3 -6 -6
Profit after financial items -13 -9 -58 -42 -53
Appropriations - - - - 4
Profit before tax -13 -9 -58 -42 -49
Tax 3 2 16 11 13
Net profit for the period -10 -7 -42 -31 -36
Operating profit includes
depreciation/amortization of 0 2 1 6 6

Profit for the period corresponds to comprehensive income for the period.

Condensed balance sheet, Parent Company
SEK m 30/9/2011 30/9/2010 31/12/2010
Assets
Property, plant and equipment 3 4 4
Participations in Group companies 3,468 3,468 3,468
Other financial non-current assets 4 4 3
Deferred tax assets 9 10 11
Total non-current assets 3,484 3,486 3,486

Receivables from Group companies1 993 644 2,102
Other current assets 227 207 8
Cash and bank balances - - 0
Total current assets 1,220 851 2,110

Total assets 4,704 4,337 5,596

Shareholders' equity and liabilities
Restricted shareholders' equity 262 262 262
Unrestricted shareholders' equity 2,730 2,528 3,402
Total shareholders' equity 2,992 2,790 3,664

Untaxed reserves 1 5 1

Non-current interest-bearing liabilities 31 32 32
Noninterest-bearing non-current liabilities 4 8 7
Total non-current liabilities 35 40 39

Current interest-bearing liabilities 600 380 406
Liabilities to Group companies2 1,042 1,086 1,404
Accounts payable – trade 13 12 15
Other current noninterest-bearing liabilities 21 24 67
Total current liabilities 1,676 1,502 1,892

Total shareholders' equity and liabilities 4,704 4,337 5,596

Contingent liabilities 357 358 357
Pledged assets - - -

1) Of which, interest-bearing receivables 992 643 872
2) Of which, interest-bearing liabilities 1,036 1,085 1,364

15


FINANCIAL DEFINITIONS
Average number of employees during the year: Total Net debt: Cash and cash equivalents plus interest-bearing
number of hours worked divided by the number of hours receivables less interest-bearing liabilities and provisions.
worked per year (1,920 hours). Net debt-equity ratio: Interest-bearing liabilities and
Capital employed: Total assets less noninterest-bearing provisions less cash and cash equivalents and interest-
liabilities and noninterest-bearing provisions. Average bearing receivables, divided by shareholders’ equity
capital employed is calculated as capital employed at the including non-controlling interests.
start of the year plus capital employed at the end of the Operating margin: Operating profit as a percentage of
year, divided by two. net sales for the period.
Cash flow per share: Cash flow for the year divided by a P/E multiple before and after dilution: Share price in
weighted average number of shares outstanding. relation to earnings per share.
Debt-equity ratio: Interest-bearing liabilities divided by Return on capital employed: Profit after financial items,
shareholders’ equity including non-controlling interests. plus financial expenses, as a percentage of average
Dividend yield: Dividend per share divided by the year- capital employed.
end share price. Return on shareholders’ equity: Net profit for the year
Earnings per share: Net profit for the year attributable to attributable to owners of the parent as a percentage of
owners of the parent divided by a weighted average average equity attributable to owners of the parent.
number of shares outstanding. Average equity is calculated as shareholders’ equity at the
Equity ratio: Shareholders' equity including non- start of the year plus shareholders’ equity at the end of the
controlling interests as a percentage of total assets. year, divided by two.
Interest cover ratio: Profit after financial items plus
financial expenses, divided by financial expenses.
Margin after financial items: Profit after financial items
as a percentage of net sales for the period.
Net asset value per share: Equity attributable to owners
of the parent divided by the number of shares outstanding.

GLOSSARY
Autoorder: An automated store restocking system. members within the Shell, Statoil 123, Hydro, Bilisten and
Delivery reliability: The share of delivered goods in Preem service station chains.
relation to the share of ordered goods. GRI: Global Reporting Initiative.
E-learning: An interactive training program. Like-for-like sales: Like-for-like sales refer to store sales
EMAB: EMAB is a collaborative organization for reported on the basis of an entire comparison period, i.e.,
independent service station stores, with approximately 400 two years.

ABOUT AXFOOD
Axfood conducts food retail and wholesale business in Sweden. Retail business is
conducted through the wholly owned store chains Willys, Hemköp and PrisXtra.
Wholesale business is conducted through Dagab and Axfood Närlivs. Axfood is listed
on Nasdaq OMX Stockholm AB's Large Cap list. Axfood has an approximate 20%
Axfood AB, SE-171 78 Solna share of the food retail market in Sweden.
Visitors' address: Hemvärnsgatan 9 Mission
Tel. +46-8-553 990 00 Axfood’s business mission is to develop and run successful food retail concepts
Fax +46-8-730 03 59 based on clear and attractive customer offerings.
info@axfood.se, www.axfood.se
Business model
Axfood's business model is built upon a strong purchasing function, focus on private
label products, efficient logistics and attractive grocery stores.

Strategy
Axfood will be the most profitable company in the Swedish food retail market and
grow its market shares by strengthening and developing its position. Axfood's long-
term goal is to attain an operating margin of 4%. Axfood's strategy is built upon five
cornerstones: customers, profitability, growth, the environment and social
responsibility. and employees and organization. Read more by visiting
www.axfood.se.
Value drivers
Factors that affect Axfood's performance include:
• Access to strategic store locations
• Development of an attractive product offering
• Innovativeness for enhancing customer benefit

16

Axfood interim report q3 2011

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Axfood interim report q3 2011