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AxfoodJuly-September, 2013

Anders StrålmanCEO

Axfood July-September 2013

• Net sales: SEK 9,465 m (9,044) +4.7%

– Focus on strong customer offerings and attractive stores

• Operating profit: SEK 382 m (370) +3.2%– Operating margin: 4.0% (4.1)

– Positive result for all business units

• Continued focus on implementation of new business system

Net sales

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Willys July-September 2013

• Good sales growth: SEK 5,092 m (4,818) +5,7%– Like-for-like sales: +2.2%– Successful customer programme had a

positive impact on sales– More than 1 million members in the program

• Operating profit: SEK 219 m (215) 1.9%– Operating margin: 4.3% (4.5)– Five new stores

Net sales

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Hemköp July-September 2013

• Net sales: SEK 1,341 m (1,338) 0.2%– Like-for-like sales: 2.3%

• Improved operating profit: SEK 42 m (36)– Operating margin: 3.1% (2.7)

• New digital customer programme launched in October

• A number of stores are being modernized Operating margin

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Axfood Närlivs July-September 2013

• Good sales growth: SEK 1,738 m (1,652) +5.2%– Favorable weather and strong campaign

offerings had a positive impact on sales

• Operating profit: SEK 52 m (50)

– Operating margin: 3.0% (3.0)

• Implementation of new business system will start in Q4

Operating profit

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Dagab July-September 2013

• Operating profit: SEK 32 m (47)– Result affected by cost related to

implementation of the new business system

– System will be installed in the warehouse in Gothenburg during Q4

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Market outlook

• Uncertain development in Swedish economy

• Stable growth in food retail industry

• Around 2 percent food price inflation expected for the full year

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Strategy for profitable growth

• Develop the various concepts– Modernize both Willys and Hemköp stores– Attractive customer offerings

• Development of customer programme

• High level of private label share

• Continued implementation of new business system

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Operating profit at least at the same level as in 2012

Axfood’s estimation 2013

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Financial overviewJuly-September, 2013

Karin Hygrell JonssonCFO

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Net sales, SEK m Operating margin, % Key ratios

SEK mQ3

2013Q3

2012 Change

Net sales 9,465 9,044 4.7%

Change in like-for-like sales, % 2.3% 0.0% 2.3

Operating profit 382 370 3.2%

Operating margin, % 4.0% 4.1% -0.1

Number of stores, Group-owned 254 244 10

Axfood July-September 2013

• Strong result and sales growth

9 044 9 252 8 9509 557 9 465

Q3 -12 Q4-12 Q1-13 Q2-13 Q3-13

2.83.4

4.04.1

2.8

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Net sales, SEK m Operating margin, % Key ratios

SEK mQ3

2013Q3

2012 Change

Net sales 5,092 4,818 5.7%

Change in like-for-like sales, % 2.2% -0.1% 2.3

Operating profit 219 215 1.9%

Operating margin, % 4.3% 4.5% -0.2

Number of stores 184 172 12

Willys July-September 2013

5 0925 1744 9194 9274 818

Q3 -12 Q4 -12 Q1-13 Q2-13 Q3-13

4.34.53.9

3.54.1

• Good sales performance and stable earnings

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Net sales, SEK m Operating margin, % Key ratios

SEK mQ3

2013Q3

2012 Change

Net sales 1,341 1,338 0.2%

Change in like-for-like sales, %, Group-owned 2.3% 0.2% 2.1

Operating profit 42 36 16.7%

Operating margin, % 3.1% 2.7% 0.4

Number of stores Group-owned Franchise

70 111

67 114

3-3

Hemköp July-September 2013

1 4741 407 1 392 1 3411 338

Q3 -12 Q4 -12 Q1-13 Q2-13 Q3-13

2.7

3.9

2.1

3.2 3.1

• Stable sales and improved result

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Net sales, SEK m Operating margin, % Key ratios

SEK mQ3

2013Q3

2012 Change

Net sales 1,738 1,652 5.2%

Distributed sales 1,614 1,512 6.7%

Operating profit 52 50 4.0%

Operating margin, % 3.0% 3.0% -

Number of stores, Axfood Snabbgross 20 20 -

Delivery reliability, % 97.5 97.8 -0.3

Axfood Närlivs July-September 2013

1 7381 728

1 4271 570

1 652

Q3 -12 Q4 -12 Q1-13 Q2-13 Q3-13

3.03.0

1.8

0.8

2.4

• Favorable summer weather had positive impact on sales

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Net sales, SEK m Operating margin, % Key ratios

SEK mQ3

2013Q3

2012 Change

Net sales 6,346 6,000 5.8%

Distributed sales 4,421 4,189 5.5%

Operating profit 32 47 -31.9%

Operating margin, % 0.5% 0.8% -0.3

Dagab July-September 2013

6 3466 4006 1946 3486 000

Q3 -12 Q4 -12 Q1-13 Q2-13 Q3-13

0.5

0.80.7

0.5

0.2

• Increased costs due to implementation of the new business system– Will continue to affect the result during 2013

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Other July-September 2013

• Net sales: SEK 1,284 m (1,113), +15.4%

– Good sales development for fruits & vegetables and meat

• Operating profit: SEK 37 m (22)

– Amortization of new business system with SEK 17 m (15)

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Key ratios January-September 2013

• Balance sheet, total: SEK 8,460 m (8,499)

• Cash flow operating activity: SEK 1,112 m (1,385)

– Previous year was affected by lower tax payments

• Capex: SEK 551 m (679)

– Investment plan 2013: SEK 800-900 m– Investment plan 2014: In level with 2013

0

200

400

600

800

1 000

-09 -10 -11 -12

SEK m

Capital expenditure

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Financial targets & dividend policy

• Axfood's estimation is that operating profit for 2013 will be at least 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%

Summary

• Good sales development and result– Increased market share

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Q & A

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