Axfood AB reported its best results ever for 2010, with operating profit increasing 7.2% over 2009. Key objectives of operating profit maintaining 2009 levels and profitable growth were achieved, with sales growth of 5.8%. The board proposed a dividend of SEK 12 per share, representing 73% of profit after tax in line with the company's 50% minimum dividend policy. Looking ahead, Axfood aims to maintain at least 2010 operating profit levels through store optimization, sales growth stimulation, cost control and increased private label sales.

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
3

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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