Axfood reported stable sales growth of 3.6% for the second quarter of 2011 with net sales of SEK 8,889 million. The operating profit increased 13.6% to SEK 317 million and the operating margin improved to 3.6%. All of Axfood's operations, including Willys, Hemköp, PrisXtra, Axfood Närlivs and Dagab, delivered continued positive results. Axfood aims to achieve an operating profit in 2011 at least equal to the level achieved in 2010 through high rates of store establishments and modernization, good cost control and efficiency measures, and stimulating sales growth.

1. Axfood
April – June, 2011
1

2. Axfood April – June 2011
• Stable sales growth : SEK 8,889 m
(8,583), + 3.6%
• Strong result: SEK 317 m (279),
+13.6%
• Operating margin: 3.6% (3.3)
• Continued positive result for all
operations
• Generally week Swedish food retail
market
2

3. Willys April – June 2011
• Good profitability and stable sales
development
• High pace of store modernization
• Like for like sales affected by
– Week food retail market
– Strong competition
3

4. Hemköp April – June 2011
• Good result and like for like sales
• Expansion of approximately 50
stores 2011
– Franchise agreement with
individual Vi retailers
• Target 2011: 2% EBIT margin
4

5. PrisXtra April – June 2011
• Positive operating profit
• Unsatisfying sales development
– Two stores are affected by major
road work
– Strategic locations in the future
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6. Axfood Närlivs April – June 2011
• Good sales in all areas
– New agreements
– Easter holiday sales
– Favourable weather
• Renewed agreement with OKQ8
– Supply of newsstand and food
retail products
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7. Dagab April – June 2011
• Favourable earnings
– Cost control and efficiency
– Good service level, 96.8%
• Successful sustainability work
– Received two recognitions for its
active environmental work
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8. Market trends 2011
• Uncertain market development
• Competition remains high
• Price conscious customers
• Average food price inflation of
around 2%
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9. Strategy for profitable growth 2011
• High level of establishments and
modernization of stores
• Good cost control and efficiency
• Stimulate sales growth and increase
private label share
9

10. Axfood’s goal 2011
To achieve an operating profit
at least at the same level as in
2010
10

11. Financial Overview
April – June, 2011
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12. Axfood April – June 2011
• Continued positive result in all
operations
Axfood group, SEK m 2011 2010 Change
Net sales 8,889 8,583 + 3.6%
Operating profit 317 279 + 13.6%
Operating margin 3.6% 3.3% -
12

13. Willys April – June 2011
• Good result and stable
development
Sales Operating profit
4,805
4,665
195 205 Operating margin
4.3%
-10 -11 -10 -11
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14. Hemköp April – June 2011
• Continued positive result and like
for like sales
Sales Operating profit
1,224 1,184
23 Operating margin
10
-10 -11 -10 -11
+4.1%
1.9%
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15. PrisXtra April – June 2011
• Positive result
• Unsatisfying sales development
PrisXtra, SEK m 2011 2010 Change
Net sales 142 161 - 11.8%
Operating profit 4 -3 -
Operating margin 2.8% - 1.9% -
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16. Axfood Närlivs April – June 2011
• Good sales growth
– New agreements
– Easter sales
– Favourable weather
Axfood Närlivs, SEK m 2011 2010 Change
Net sales 1,691 1,491 + 13.4%
Operating profit 36 34 + 5.9%
Operating margin 2.1% 2.3% -
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17. Dagab April – June 2011
• Good result development
– Cost control and efficiency
Dagab, SEK m 2011 2010 Change
Net sales 6,623 6,422 + 3.1%
Operating profit 41 34 + 20.6%
Operating margin 0.6% 0.5% -
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18. Other April – June 2011
• Sales: SEK 1 082 m (1 026)
• Operating profit: SEK 8 m (9)
– Amortization of new business
system SEK 8 m (6)
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19. Key ratios January – June 2011
• Balance sheet, total: SEK 7,975 m (7 556)
• Cash flow operating activity: SEK 638 m
(708)
• Capex: SEK 488 m (454)
• Investment plan 2011:
SEK 900 – 1 000 m (862)
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20. 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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21. Summary
• Strong result
– Good cost control
• Stable sales performance
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