Axfood q3 2011 presentation

1. Axfood
July – September, 2011
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2. Axfood July – September 2011
• Stable sales growth: SEK 8,735 m
(8,582), + 1.8%
• Good earnings: SEK 370 m (364),
+1.6%
• Operating margin: 4.2% (4.2)
• Good efficiency and cost control
• Uncertainty in the market environment
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3. Hemköp July – September 2011
• Strengthened result and positive
like for like sales
• Conversion of Vi-stores to
Hemköp franchise started
– 17 stores are so far converted
– Around 50 stores in total will be
converted
• Target 2011: 2% EBIT margin
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4. Willys July – September 2011
• Stable development and good
operating margin
• High pace of store modernization
• Like for like sales affected by
– Weak growth for stores that are
still not modernized
– New competition
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5. PrisXtra July – September 2011
• Result in line with plan
• Unsatisfying sales development
– Two stores are affected by major
road work
– Strategic locations in the future
• Target 2011: Positive operating
profit
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6. Axfood Närlivs July – September 2011
• Good sales growth in all areas
– New agreements
– Good development in e-commerce
• New agreement with Svenska
Statoil
– Supply of newsstand and food
retail products from 1 January
2012
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7. Dagab July – September 2011
• Stable performance
– Cost control and efficiency
– Good service level, 97.0%
• Extensive environmental
programme continued
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8. Market trends 2011
• Uncertain market development
• Competition remains high
• Price conscious customers
• Increased interest for private label
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9. Strategy for profitable growth 2011
• Stimulate sales growth
• Cost control and efficiency
• High level of establishments and
modernization of stores
• Increase private label share
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10. Axfood’s goal 2011
To achieve an operating profit
at least at the same level as in
2010
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11. Financial Overview
July – September, 2011
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12. Axfood July – September 2011
• Favourable earnings
• Good cost control
Axfood group, SEK m 2011 2010 Change
Net sales 8,735 8,582 + 1.8%
Operating profit 370 364 + 1.6%
Operating margin 4.2% 4.2% -
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13. Willys July – September 2011
• Stable earnings
• Like-for-like sales: -1.3%
Sales Operating profit
4,706
4,660
214 212 Operating margin
4.5%
-10 -11 -10 -11
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14. Hemköp July – September 2011
• Improved profitability
• Like-for-like sales: +0.6%
• Target 2011: 2% EBIT margin
Sales Operating profit
1,164 1,143
34 Operating margin
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-10 -11 -10 -11
+4.1%
3.0%
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15. PrisXtra July – September 2011
• Result according to plan
• Unsatisfying sales development
PrisXtra, SEK m 2011 2010 Change
Net sales 123 143 - 14.0%
Operating profit -1 1 -
Operating margin - 0.8% 0.7% -
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16. Axfood Närlivs July – September 2011
• Good sales growth in all areas
– New agreements
– Positive development in e-commerce
Axfood Närlivs, SEK m 2011 2010 Change
Net sales 1,714 1,571 + 9.1%
Operating profit 44 43 + 2.3%
Operating margin 2.6% 2.7% -
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17. Dagab July – September 2011
• Stable development
– Good cost control and efficiency
Dagab, SEK m 2011 2010 Change
Net sales 6,427 6,379 + 0.8%
Operating profit 56 58 - 3.4%
Operating margin 0.9% 0.9% -
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18. Other July – September 2011
• Sales: SEK 1,038 m (993)
• Operating profit: SEK 25 m
(37)
– Amortization of new business
system SEK 10 m (4)
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19. Key ratios January – September 2011
• Balance sheet, total: SEK 7,911 m (7,367)
• Cash flow operating activity: SEK 1,004 m
(1,037)
• Capex: SEK 696 m (592)
• Investment plan 2011:
SEK 900 – 1 000 m (862)
– Same level is expected for 2012
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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
• Good result
– Cost control and efficiency
• Uncertainty in the market
environment
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