axfood annual general meeting 2012
TRANSCRIPT
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Annual General Meeting2012
Anders StrålmanPresident and CEO
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The best result ever…
• Operating profit: SEK 1,250 m (1,209) +3.4%
• Operating margin: 3.6% (3.5)
• Stable sales development: SEK 34,795 m (34,260) +1.6%
• Ambitious pace of investment: SEK 993 m (862)– High pace in store establishments and
modernisations
– Continued implementation of a new business system
…despite a generally weak market
1,250+3.4%
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Hemköp – Strengthened result
• Operating profit: SEK 94 m (45)
• Operating margin: 2.0% (0.9)
• Net sales: SEK 4,787 m (4,978), -3.9%– Like-for-like sales: +0.4%
• Target 2012: 3% operating marginOperating margin
2.0%
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Hemköp grows in Stockholm
43 new franchise stores
• Agreement with independent Vi-stores
• Strengthens the Hemköp brand, foremost in Stockholm
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Financing of franchise stores
• Renewed mandate of 10 stores within Hemköp according to decision from the AGM 2011
• 91/9-model for a maximum of 5 years and then 1/99-model
• Market value sales
• The model enables franchise operation
– Development and career opportunities for employees within Axfood
– Also attracts external grocers and store managers outside of Axfood
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Willys – Stable development and good earnings
• Operating profit: SEK 775 m (772) +0.4%
• Operating margin: 4.1% (4.1)
• Net sales: SEK 18,904 m (18,613), +1.6%
• Like-for-like sales affected by:
– Weak growth for stores that are still not modernized
– Increased competition, both internal and external
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High pace in establishments and store renewals
• Åkersberga
• Gamlestaden
• Västervik
• Mora
• Orminge (ny)
• Kungsbacka
• Norrtälje
• Halmstad Öster (ny)
• Örebro Västhaga
• Karlshamn (ny)
• Limhamn
• Uppsala Gottsunda
• Jönköping Österängen
• Söderköping
• Eslöv (ny
• Luleå
• Sundbyberg (ny)
• Häggvik
• Visby
• Kristianstad
• Mjölby (ny)
• Gislaved (ny)
• Bro
• Åtvidaberg
• Tumba
• Nacka Forum (ny)
• Söderhamn (ny)
• Örebro Vivalla
• Dal Ed
• Friskv.torget
• Kaverös
• Täby
• Björkekärr
• Torslanda
• Jönköping
• Utlandagatan
• Lövgärdet
• Laholm
• Sten Sturegatan
• Saltsjöbaden (ny)
• Helsingborg
• Opaltorget
• Skara
• Örebro city
• Säter
11 new stores and 46 modernisations
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PrisXtra full year 2011
• Strengthened result– Operating profit: SEK 15 m (-5)
• Unsatisfying sales development– Net sales: SEK 549 m (637), -13.8%
– Future strategic locations
• Integrated organisation with Hemköp
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Axfood Närlivs – Growing market shares
• Good sales developmet in all areas – Net sales: SEK 6,365 m (5,847) + 8.9%– Operating profit: SEK 110 m (113)– Good service level: 97.7%
• Renewed agreement with OKQ8 and Preem and new agreement with Svenska Statoil
• Signed an agreement to acquire 50% of Hall Miba– Provides care products to service
stations and retailers
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Axfood Närlivs – Wholesaling
100 stores
300 stores
250 stores
300 stores
70 stores
120 stores
400 stores 120 stores
420 stores
80 stores
300 stores
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Dagab – Continues improved efficiency
• Operating profit: SEK 192 m (189), +1.6%– Operating margin: 0.7% (0.7)
• Net sales: SEK 25,813 m(25,701), +0.4%
• Good service level: 97.1%
• Ambitious sustainability programme– Fuel partly based on environment friendly
pine oil
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Sustainable development
• Lower energy consumption
• Improved waste sorting
• Lower carbon emissions from transports
• Climate compensation
• More than SEK 4 m for Save the Children
• Increased employee trainings
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Increased private label share
• Highest private label share so far: 24.2%– Successful conversion to Group-wide
label, Garant
• Target 2012: 25% private label share
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Dividend
• Shareholder dividend of at least 50% of profit for the year after tax
• Equity ratio of at least 25%
• The board proposes a dividend of SEK12 per share (12) 71%
dividend of profit after tax
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Market outlook 2012
• Uncertain market development
– Consumption is slowing
• Food price inflation at low levels
• New salary agreements ahead with uncertain outcome
• Continued tough competition
• Price conscious customers
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Strategy for profitable growth 2012
• Stimulate sales growth– Well operated stores
• Committed employees
• Cost control and efficiency
• Increased private label share
• Ambitious pace of investment– SEK 900 – 1,000 m– Continued high pace in store
establishments and renewals– Implementation of a new business
system continues
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Axfood’s goal for 2012
Achieve an operating profit in line with 2011