1

Axfood

January-December, 2012

2

Axfood January-December 2012

• Favourable sales: SEK 36,306 m (34,795) +4.3%

• Stable earnings: SEK 1,247 m (1,250) exkl impairment– Operating margin: 3.4% (3.6) exkl

impairment

• Positive result for all business units

• Impairment of SEK 55 m for the PrisXtra brand

36,306+4.3%

Net sales

Willys – Best result ever

• Stable sales growth: SEK 19,407 m (18,904), +2.7%– Like-for-like sales: 0.0% (-1,6)

• Good result: SEK 796 m (775) +2.7%

– Operating margin: 4.1% (4.1)

• High pace in store modernization– Remaining 20 stores will be modernized

during this year

• Developed a customer loyalty program that will be launched next week 796

+2.7%

Operating profit

4

Hemköp – Best result in 10 years

• Good sales performance: SEK 5,082 m (4,787), +6.2%

– Like-for-like sales: +2.0% (0,4)

• Best result in ten years: SEK 133 m (94)

– Operating margin: 2.6% (2.0)

• Target 2013: At least 3% operating margin

• Increased marketing activities

• Thomas Gäreskog appointed as new CEO in December +6.2%

Net sales

PrisXtra’s largest store to become Hemköp

• PrisXtras largest store at Norra Station will become Hemköp in 2013– Future strategic location

• Remaining four stores will gradually be converted to Hemköp or Willys

• Impairment of SEK 55 m for the PrisXtra brand

6

PrisXtra – Continued positive result

• Decrease in sales due to major road constructions– Net sales: SEK 502 m (549), -8.6%

• Positive result: SEK 16 m (15)

7

Axfood Närlivs – Wholesale operation

• Favourable sales growth, SEK 6,336 m (5,516), +14.9%

– Deliveries to new customers and good development in cash-and-carry business

– New e-commerce site for business-to-business– Sales affected by bad weather conditions

• Operating profit: SEK 113 m (110)

+14.9%Net sales

8

Dagab – Efficient logistics

• Stable development– Efficiency and high delivery reliability

• Operating profit: SEK 163 m (192)– Increased costs due to implementation of the

new business system– Will continue to affect the result during 2013

97.5%Delivery reliability

9

Market outlook

• Uncertain development in Swedish economy but stable food retail market

• Food price inflation initially at low levels

• Competition remains high

• Price conscious customers

10

Strategy for profitable growth

• Further stimulate sales growth– Well operated stores

• High level of private label

• Efficiency and cost control

• Ambitious pace of investment– High pace in store establishments and

renewals– Implementation of the new business

system continues

11

Axfood’s goal for 2013

Achieve an operating profit

at the same level as in 2012

12

Financial Overview

January-December, 2012

13

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 36,306 34,795 4.3%

Change in like-for-like sales, % 0.3% -1.1% 1.4

Operating profit 1,192 1,250 -4.6%

Operating margin, % 3.3% 3.6% -0.3

Number of stores, Group-owned 246 237 9

Axfood January-December 2012

9,044 9,2528,914 8,718

9,292

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4-12

2.8

3.44.1

3.6

2.8

• Stable earnings and sales development

• Impairment of SEK 55 m for the PrisXtra brand

14

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 19,407 18,904 2.7%

Change in like-for-like sales, % 0.0% -1.6% 1.6

Operating profit 796 775 2.7%

Operating margin, % 4.1% 4.1% -

Number of stores 174 170 4

Willys January-December 2012

4,9614,7014,848 4,9274,818

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12

4.4 4.53.94.1

3.6

• Best result ever

• High pace in store modernization

15

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 5,082 4,787 6.2%

Change in like-for-like sales, %, Group-owned 2.0% 0.4% 1.6

Operating profit 133 94 41.5%

Operating margin, % 2.6% 2.0% 0.6

Number of stores Group-owned Franchise

67 114

62 121

5-7

Hemköp January-December 2012

1,2711,2391,255

1,3471,225

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12

1.7

2.6

4.1

1.9 1.9

• Good profit and sales performance

• Increased marketing activities

16

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 502 549 -8.6%

Change in like-for-like sales, % -8.6% -10.0% 1.4

Operating profit 16 15 6.7

Operating margin, % 3.2% 2.7% -0.5

Number of stores 5 5 -

PrisXtra January-December 2012

113130132140

127

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12

3.8 3.5

2.4

3.63.0

• Positive result

• PrisXtra stores will be converted to Hemköp or Willys

17

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 6,336 5,516 14.9%

Distributed sales 5,822 4,992 16.6%

Operating profit 113 110 2.7%

Operating margin, % 1.8% 2.0% -0,2

Number of stores, Axfood Snabbgross 20 20 -

Delivery reliability, % 97.9 97.7 0.2

Axfood Närlivs January-December 2012

1,673

1,4411,3821,5701,652

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12

1.7

3.0

1.71.7

0.6

• Good sales mainly driven by deliveries to new customers and new businesses

18

Net sales, SEK m Operating margin, % Key ratios

SEK m 2012 2011 Change

Net sales 24,634 24,295 1.4%

Distributed sales 17,205 16,981 1.3%

Operating profit 163 192 -15.1%

Operating margin, % 0.7% 0.8% -0.1

Delivery reliability, % 97.5 97.1 0.4

Dagab January-December 2012

6,2646,0226,2736,3486,000

Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12

0.6

0.80.7

0.9

0.5

• Increased costs due to implementation of the new business system

– Will continue to affect the result during 2013

19

Other January-December 2012

• Net sales: SEK 4,521 m (4,156), +8.8%

• Operating profit: SEK -29 m (64)– Impairment of SEK 55 m for the PrisXtra

brand– Amortization of new business system of

SEK 55 m (33)

20

Key ratios January-December 2012

• Balance sheet, total: SEK 8,798 m (8,278)

• Cash flow operating activity: SEK 1,915 m (1,384)

• Capex: SEK 932 m (993)– Investment plan 2013: SEK 900-1,000 m

• Reduced company tax rate had a positive effect on profit after tax by SEK 50 m

• The Board of Directors proposes a dividend of SEK 12 per share (12)

0

200

400

600

800

1 000

-09 -10 -11 -12

SEK m

Capital expenditure

21

Financial targets & dividend policy

• Axfood's goal for 2013 is to achieve an operating profit at the same level as in 2012

• Equity ratio of at least 25%

• Shareholder dividend of at least 50% of profit for the year after tax

• Long term target for an operating margin of 4%

22

Summary

• Stable result and sales performance

• All business units delivered a positive result

23

Axfood

Q&A