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Interim Report ICA AB January 1 – September 30, 2008

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Page 1: Interim Report ICA ABinvestors.icagruppen.se/afw/files/press/ica/... · The new pricing strategy was launched during the spring, and we cut prices on 1,000 items. The turnaround work

Interim Report ICA AB January 1 – September 30, 2008

Page 2: Interim Report ICA ABinvestors.icagruppen.se/afw/files/press/ica/... · The new pricing strategy was launched during the spring, and we cut prices on 1,000 items. The turnaround work

ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

ICA’s Interim Report Stockholm, November 5, 2008

The third quarter produced a further increase in sales but lower operating income

Third quarter • Net sales for the third quarter amounted to SEK 22,768 million (20,697), an increase of 10.0 percent. • Operating income excluding capital gains on property sales for the third quarter amounted to SEK 633

million (736), a decrease of 14.0 percent. Operating income including capital gains for the third quarter amounted to SEK 683 million (899), a decrease of 24.0 percent.

• Net income for the third quarter amounted to SEK 550 million (736), a decrease of 25.3 percent.

Nine-month period • Net sales for the nine-month period amounted to SEK 66,832 million (60,187), an increase of 11.0

percent. • Operating income excluding capital gains on property sales for the nine-month period amounted to SEK

1,381 million (1,344), an increase of 2.8 percent. Operating income including capital gains for the nine-month period amounted to SEK 1,602 million (1,840), a decrease of 13.0 percent.

• Net income for the nine-month period amounted to SEK 1,298 million (1,568), a decrease of 17.2 percent.

Key financial ratios July – September January - September Full-year 2008 2007 % 2008 2007 % Net sales 22,768 20,697 10.0 66,832 60,187 11.0 82,326Operating income 683 899 -24.0 1,602 1,840 -13.0 2,602Operating income excluding capital gains 1) 633 736 -14.0 1,381 1,344 2.8 2,006Net income for the period 550 736 -25.3 1,298 1,568 -17.2 2,166Total assets 38,476 36,508 37,319Cash flow from operating activities 1,627 303 3,297 2,516 4,169Operating margin, % 3.0 4.3 2.4 3.1 3.2Operating margin excluding capital gains 1) 2.8 3.6 2.1 2.2 2.4Equity/assets ratio, % 32.1 31.4 32.4Return on equity, % 2) 15.2 18.8 19.1Return on capital employed, % 3) 12.8 12.0 13.81) Operating income excluding capital gains on property sales and impairment losses on fixed assets. 2) Return on equity = Income after tax as a percentage of average equity. The operations of ICA Banken are excluded from both the income statement and balance sheet in the calculation. The return is calculated on a moving 12-month period. 3) Return on capital employed = Income after financial income as a percentage of average capital employed. The operations of ICA Banken are excluded from both the income statement and balance sheet in the calculation. The return is calculated on a moving 12-month period.

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Comment by the CEO In the turbulent economic environment, we remain vigilant about changes to customer and competitor behaviour. The base of ICA Sverige is solid and we are pleased with the development of Rimi Baltic and ICA Banken, but there is still a lot of hard work with the challenges we face in ICA Norge. ICA has decided to introduce a new, more decentralized organization. In order to respond to local conditions ICA must be able to better adapt its stores and product ranges to the various needs of customers in Sweden, Norway and the Baltic countries. The new organization will also lead to more efficient work processes and provide opportunities for cost reductions. Consolidated net sales rose by 10 percent during the third quarter. Operating income excluding capital gains amounted to SEK 633 million, a decrease of 14 percent compared with the third quarter last year. The decrease is primarily due to the higher operating losses in ICA Norge mainly reflecting the initial impact of the price repositioning and continued high shrinkage. The higher operating losses in ICA Norge are also due to the fact that stores opened in 2007 and 2008 are not yet operating at a profit. The new pricing strategy was launched during the spring, and we cut prices on 1,000 items. The turnaround work in ICA Norge continues. During the quarter, we have implemented organizational changes to bring focus and experience to the issues we face. In August, Antonio Soares, the former CEO of Rimi Baltic, was appointed the new CEO of ICA Norge. In addition, we have appointed a new CFO and a new head of store operations. An immediate action of the new team was to develop a new concept for Rimi that has already been tested in two pilot stores with a positive outcome. The new concept will be launched gradually in more Rimi stores. ICA Sverige’s operating income improved slightly during the quarter reflecting increased sales and changes in cost allocation methodology, offset however by a lower non-food result. Rimi Baltic’s operating income was also stronger thanks to increased sales and an improved gross margin. ICA Banken improved its operating income during the third quarter mainly due to higher net interest income and net commissions. We continue to focus on our quality work with the goal that ICA will be the best in food quality in Sweden. An important element is the introduction of a common quality standard for all ICA stores. ICA’s proposed quality standard is being drafted in consultation with other food retailers and the Swedish National Food Administration. Last spring we tested personalized discount offerings with ICA’s frequent customers in the county of Östergötland with a very positive response. In October, we introduced the offerings to our frequent customers on a nationwide basis in Sweden. This is the first time a company has customized offerings to such a large extent. Consolidated net sales rose by 11 percent during the nine-month period. Operating income excluding capital gains on real estate sales amounted to SEK 1,381 million, an increase of 2.8 percent. The increase is due to improved operating income for ICA Sverige, Rimi Baltic and ICA Banken, partially offset by ICA Norge’s operating losses. Operating income including capital gains decreased by 13 percent.

Important events during the third quarter • In August, Antonio Soares was named the new CEO of ICA Norge. He was most recently CEO of Rimi Baltic.

At the same time, Edgar Sesemann has been appointed Deputy CEO of Rimi Baltic and Acting CEO.

Important events after the conclusion of the third quarter • In connection with the organizational changes announced today, Anders Nyberg has decided to leave ICA

and his position as Executive Vice President of ICA AB. Also, ICA Sverige’s Chief Operating Officer, Peder Larsson, has decided to leave ICA. In addition to the role as CEO and President of ICA AB, Kenneth Bengtsson will take over as acting CEO of ICA Sverige. At the same time, Mats Holgerson has been appointed COO of ICA AB. ICA’s non-food operations will become a separate subsidiary of the Group. Björn Abild has been named the CEO of this company.

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Sales and financial results The third quarter

GROUP Consolidated net sales during the third quarter amounted to SEK 22,768 million (20,697), an increase of 10.0 percent. Net sales at fixed exchange rates rose 9.6 percent. Operating income for the third quarter amounted to SEK 683 million (899) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 50 million (163). Operating income excluding these items amounted to SEK 633 million (736). During the third quarter operating income improved for ICA Sverige, Rimi Baltic and ICA Banken, but decreased for ICA Norge and ICA Group Functions.

ICA SVERIGE ICA Sverige’s net sales increased by 9.4 percent. Operating income amounted to SEK 754 million (727) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 54 million (36). Operating income excluding these items amounted to SEK 700 million (691). The improvement in operating income is due to increased sales and changes in cost allocation methodology, offset however by a lower non-food result.

ICA NORGE ICA Norge’s net sales increased by 6.2 percent. In local currency the increase was 5.7 percent. The sales increase is due to the consolidation of more stores in ICA Norge and due to an increase in sales in comparable stores. The operating deficit amounted to SEK –109 million (120) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK –4 million (119). The operating deficit excluding these items was SEK –105 million (1). The operating deficit has increased in connection with the introduction of a price repositioning as well as continued high shrinkage. The increased deficit is also due to the fact that stores opened in 2007 and 2008 are not yet operating at a profit.

RIMI BALTIC Rimi Baltic’s net sales increased by 20.1 percent. In local currency the increase was 17.6 percent. Operating income amounted to SEK 89 million (36) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 0 million (8). Higher sales and a better gross margin have lifted operating income.

ICA BANKEN ICA Banken’s revenues rose by 14.5 percent. Business volume increased by 3.2 percent (2.0) during the third quarter. ICA Banken’s operating income improved to SEK 33 million (25). The improvement is due to higher net interest income and net commissions.

ICA GROUP FUNCTIONS The operating deficit for ICA Group Functions was SEK –84 million (–9). The higher deficit is mainly due to a change in the way costs are distributed within the Group. The change positively affected the operating results for ICA Norge and ICA Sverige and negatively affected ICA Group Functions during the third quarter.

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Sales and financial results Nine-month period

GROUP Consolidated net sales during the nine-month period amounted to SEK 66,832 million (60,187), an increase of 11.0 percent. Net sales at fixed exchange rates rose 10.1 percent. Operating income for the nine-month period decreased to SEK 1,602 million (1,840) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 221 million (496). Operating income excluding these items increased to SEK 1,381 million (1,344). During the nine-month period, operating income improved for ICA Sverige, Rimi Baltic and ICA Banken, but decreased for ICA Norge and ICA Group Functions.

ICA SVERIGE ICA Sverige’s net sales increased by 11.1 percent. Operating income amounted to SEK 1,898 million (1,570) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 191 million (191). Operating income excluding these items rose to SEK 1,707 million (1,379). Operating income has improved as the result of higher sales at both the retail and wholesale level as well as an improved gross margin partly due to an August 2007 increase in the logistics fee paid by ICA retailers. Operating income has, however, been offset by a lower non-food result.

ICA NORGE ICA Norge’s net sales increased by 7.1 percent. In local currency the increase was 4.2 percent. The sales increase is due to the consolidation of more stores in ICA Norge and due to an increase in sales in comparable stores. The operating deficit amounted to SEK –311 million (242) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 30 million (304). The operating deficit excluding these items increased to SEK –341 million (–62). The operating deficit has increased in connection with the introduction of a price repositioning as well as continued high shrinkage. The increased deficit is also due to the fact that stores opened in 2007 and 2008 are not yet operating at a profit.

RIMI BALTIC Rimi Baltic’s net sales increased by 18.1 percent. In local currency the increase was 16.0 percent. Operating income amounted to SEK 161 million (29) and includes capital gains on real estate sales and impairment losses on fixed assets of SEK 0 million (1). Higher sales and a better gross margin have lifted operating income.

ICA BANKEN ICA Banken’s revenues rose by 10.9 percent. Business volume increased by 11.1 percent compared with September 30, 2007 and by 7.3 percent since the beginning of the year. ICA Banken’s operating income improved to SEK 79 million (59). The improvement is due to higher commission income and better net interest income. The second quarter also included a one-time gain of SEK 17 million on the sale of shares in Master Card as well as IT expenses of SEK 15 million. Operating income also included the cost to produce and replace new debit cards.

ICA GROUP FUNCTIONS The operating deficit for ICA Group Functions was SEK –225 million (–60). The higher deficit is mainly due to a change in the way costs are distributed within the Group, a one-time bonus paid to employees in Sweden and higher pension costs.

FINANCIAL POSITION The Group’s total assets have increased by SEK 1,157 million to SEK 38,476 million since December 31, 2007. Cash flow from operating activities amounted to SEK 3,297 million (2,516) during the nine-month period. The improvement is due to improved working capital, primarily lower accounts receivable, and increased deposits in ICA Banken. Cash flow from investing activities amounted to SEK –1,858 million (102). The year-over-year change is due to fewer property sales. As a consequence, cash flow from financing activities amounted to SEK –904 million (–2,059). The Group’s liquid assets totaled SEK 4,898 million on September 30, 2008 (SEK 4,360 million on January 1, 2008). The equity/assets ratio was 32.1 percent (32.4 percent on January 1, 2008). The Group's net debt excluding ICA Banken was SEK 2,592 million (SEK 2,344 million on January 1, 2008).

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

INVESTMENTS Investments during the nine-month period amounted to SEK 1,971 million (2,145) and were distributed according to the table below. Three investments exceeded SEK 50 million: Maxi Kristiansand in Norway, Rimi Hypermarket Kurzemes and Rimi Supermarket Milgravis in Latvia.

Investments July – September January - September Full-year 2008 2007 2008 2007 2007Retail locations 739 309 1,637 1,644 2,152Distribution 38 186 121 317 394Investment properties 2 29 57 89 119Intangibles 28 16 98 52 77Other 6 24 58 43 63TOTAL 813 564 1,971 2,145 2,805

PERSONNEL The Group had an average of 21,781 employees (19,945) during the nine-month period.

PARENT COMPANY The Parent Company's net sales during the nine-month period amounted to SEK 670 million (649) with income after net financial items of SEK 740 million (839). Investments during the period amounted to SEK 36 million (63). Cash, bank balances and short-term investments amounted to SEK 5 million (5).

TRANSACTIONS WITH RELATED PARTIES No transactions have taken place between ICA and related parties that significantly affect the company's financial position and results of operations.

ACCOUNTING PRINCIPLES This interim report is prepared according to IAS 34. The same accounting principles and calculation methods are applied as in the most recent annual report. Readers of the interim report are presumed to have access to the most recent annual report. The interim report primarily contains information on events and changes that have taken place since the most recent annual report was issued and that are of considerable importance to understanding the changes in the Group’s financial position and results of operations. No new standards or statements from IASB and IFRIC have entered into force during the period which impact ICA’s financial reports. The preparation of the financial reports in accordance with IFRS requires management to make estimates and assumptions that affect the application of the accounting principles and the carrying amounts in the income statement and balance sheet. Estimates and assumptions are based on historical experience and a number of factors that under current circumstances seem reasonable. The result of these estimates and assumptions is then used to determine the carrying amounts of assets and liabilities that otherwise are not clearly indicated by other sources. Actual outcomes may deviate from these estimates and assumptions.

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

NEXT REPORTING DAYS The full-year report for January – December 2008 will be presented on February 18, 2009. The interim report for January – March 2009 will be presented on May 6, 2009. The interim report for January – June 2009 will be presented on August 19, 2009. The interim report for January – September 2009 will be presented on November 4, 2009. Stockholm, November 5, 2008 Kenneth Bengtsson President and CEO, ICA AB

REVIEW REPORT Introduction We have reviewed the interim report for ICA AB for the period January 1, 2008 to September 30, 2008. The Board of Directors and the CEO are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim financial information based on our review. Focus and scope of the review We conducted our review in accordance with the Standard on Review Engagements SÖG 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity, issued by FAR. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review has a different focus and is substantially less in scope than an audit conducted in accordance with Standards on Auditing in Sweden, RS, and other generally accepted auditing practices in Sweden. The procedures performed in a review do not enable us to obtain a level of assurance that would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed on the basis of an audit. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material respects, prepared in accordance with IAS 34 and the Annual Accounts Act for the Group and in accordance with the Annual Accounts Act for the Parent Company. Stockholm, November 5, 2008 Deloitte AB Jan Berntsson Authorized Public Accountant ------------------------------------------------------------------------------------------------- About ICA The ICA Group (ICA AB) is one of the Nordic region’s leading retail companies, with around 2,230 of its own and retailer-owned stores in Sweden, Norway and the Baltic states. The Group includes the retail companies ICA Sverige, ICA Norge and Rimi Baltic. ICA also offers financial services to Swedish customers through ICA Banken. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold N.V. of the Netherlands. According to a shareholder agreement, Royal Ahold and Hakon Invest jointly share a controlling influence over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Financial reports for the Group

Income statement - Group July – September January - September Full-yearSEK million 2008 2007 2008 2007 2007Net sales 22,768 20,697 66,832 60,187 82,326Cost of sales -19,710 -17,731 -58,001 -51,746 -70,685Gross profit 3,058 2,966 8,831 8,441 11,641Selling and administrative expenses -2,448 -2,258 -7,533 -7,205 -9,812Other operating revenue 73 190 311 603 753Share of associated companies’ net profit 0 1 -7 1 20Operating income 683 899 1,602 1,840 2,602Financial income 40 30 86 90 115Financial expenses -97 -99 -309 -319 -435Income after net financial items 626 830 1,379 1,611 2,282Tax -76 -94 -81 -43 -116Net income for the period 550 736 1,298 1,568 2,166Of which attributable to Parent Company's shareholders

554 738 1,304 1,574

2,167

Of which attributable to minority -4 -2 -6 -6 -1

Net sales by segment - Group July – September January - September Full-yearSEK million 2008 2007 2008 2007 2007ICA Sverige 14,314 13,081 41,895 37,700 51,438ICA Norge 5,029 4,739 14,955 13,961 19,095Rimi Baltic 3,147 2,620 9,138 7,740 10,736ICA Banken 149 131 424 383 517ICA Group Functions 295 275 933 892 1,186Intra-Group sales -166 -149 -513 -489

-646Net sales 22,768 20,697 66,832 60,187 82,326

Operating income by segment - Group July – September January - September Full-yearSEK million 2008 2007 2008 2007 2007ICA Sverige 754 727 1,898 1,570 2,372ICA Norge -109 120 -311 242 144Rimi Baltic 89 36 161 29 92ICA Banken 33 25 79 59 83ICA Group Functions -84 -9 -225 -60

-89Total operating income 683 899 1,602 1,840 2,602

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Financial reports for the Group (cont.)

Condensed balance sheet - Group SEK million Sept. 30, 2008 Sept. 30, 2007 Dec. 31, 2007Intangible fixed assets 3,647 3,573 3,599Tangible fixed assets 15,349 14,769 14,959Financial fixed assets 3,822 3,439 3,368Deferred tax assets 269 195 276Total fixed assets 23,087 21,976 22,202 Inventory 4,076 3,963 3,934Accounts receivable 6,199 6,193 6,720Liquid assets 4,898 4,305 4,360Assets held for sale 216 71 103Total current assets 15,389 14,532 15,117TOTAL ASSETS 38,476 36,508 37,319 Shareholders’ equity 12,346 11,451 12,073Long-term liabilities 5,203 6,703 5,537Current liabilities 20,927 18,354 19,709TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES

38,476 36,508 37,319

Pledged assets 544

6 455Contingent liabilities 959 1 804 986

Condensed statement of cash flows - Group January – September January – September Full-yearSEK million

2008 2007 2007Cash flow from operating activities before change in working capital, excluding taxes paid 2,371

2,297 3,186

Taxes paid -202 -194 -114Change in working capital 1,128 413 1,097Cash flow from operating activities 3,297 2,516 4,169Cash flow from investing activities -1,858 102 -149Cash flow from financing activities -904 -2,059 -3,372Cash flow for the period 535 559 648Liquid assets at beginning of period 4,360 3,749 3,749Exchange rate differences in liquid assets 3 -3 -37Liquid assets at end of period 4,898 4,305 4,360

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Financial reports for the Group (cont.)

Change in shareholders’ equity September 30, 2008 - Group SEK million

Attributable to Parent Company’s

shareholders

Attributable to minority

Total

Opening balance January 1, 2008 12,060 13 12,073Currency translation difference 59 59Net income for the period 1,304 -6 1,298Total change in net assets excluding transactions with the company’s owners 13,423

7 13,430

Dividend -1,084 -1,084Closing balance, September 30, 2008 12,339 7 12,346

Change in shareholders’ equity September 30, 2007 - Group SEK million

Attributable to Parent Company’s

shareholders

Attributable to minority

Total

Opening balance January 1, 2007 10,203 13 10,216Acquisition of minority 2 2Currency translation difference 623 623Net income for the period 1,574 -6 1,568Total change in net assets excluding transactions with the company’s owners

12,400 9 12,409

Dividend -958 -958Closing balance, September 30, 2007 11,442 9 11,451

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008

Financial reports for the Parent Company

Income statement – Parent Company July – September January - September Full-yearSEK million 2008 2007 2008 2007 2007Net sales 214 203 670 649 888Cost of sales -115 -108 -342 -334 -458Gross profit 99 95 328 315 430Selling and administrative expenses -167 -99 -498 -372 -519Operating income -68 -4 -170 -57 -89Result from shares in Group companies

0 0 1,145 1,156 1,156

Other financial income 18 12 42 22 35Other financial expenses -93 -94 -277 -282 -377Income after net financial items -143 -86 740 839 725Appropriations - - - - 174Income before tax -143 -86 740 839 899Tax 36 20 106

69 48Net income for the period -107 -66 846 908 947

Condensed balance sheet - Parent Company SEK million Sept. 30, 2008 Sept. 30, 2007 Dec. 31, 2007Intangible fixed assets 10 27 21Tangible fixed assets 161 173 187Financial fixed assets 33,841 33,891 33,886Deferred tax assets 5 8 6Total fixed assets 34,017 34,099 34,100 Accounts receivable 2,342 2,162 3,436Liquid assets 5 5 10Total current assets 2,347 2,167 3,446TOTAL ASSETS 36,364 36,266 37,546 Shareholders’ equity 26,084 25,622 26,322Untaxed reserves 1,292 1,466 1,292Provisions 220 326 334Long-term liabilities 8,000 8,000 8,000Current liabilities 768 852 1,598TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES

36,364 36,266 37,546

Pledged assets 5

5 5Contingent liabilities 8,813 10,449 9,239

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008 APPENDIX - Sales trends for ICA and Rimi stores The following tables refer to store sales. In Sweden, this includes Swedish retailer-owned ICA store sales. In Norway, franchise store sales are included. Sales for retailer-owned and franchised stores are not consolidated in the Group. The percentages below are year-over-year comparisons. ICA store sales in Sweden Store sales excl. VAT July - September 2008 January - September 2008

SEK million Change, all

stores Change,

comp stores SEK million Change, all

stores Change,

comp stores Maxi ICA Stormarknad 5,658 13.9 4.5 16,355 14.0 6.0ICA Kvantum 5,285 2.8 3.9 15,700 4.2 5.0ICA Supermarket 7,430 4.6 5.0 21,632 5.1 5.9ICA Nära 3,634 5.8 6.5 10,218

During the nine-month period, the share of private label sales rose to 18.3 percent (17.4) in Sweden. ICA store sales in Norway

6.6 6.6TOTAL 22,007 6.6 4.9 63,906 7.3 5.8

Store sales excl. VAT July - September 2008 January - September 2008

NOK million Change, all

stores Change,

comp stores NOK million Change, all

stores Change,

comp stores ICA Maxi 715 6.9 0.8 2,127 5.9 -1.5ICA Supermarked 1,161 5.2 -1.3 3,482 4.9 -0.6ICA Nær 1,188 7.5 4.2 3,360 2.1 3.2Rimi 1,930 -0.2 7.3 5,725

During the nine-month period, the share of private label sales decreased to 9.5 percent (10.1) in Norway. ICA store sales in the Baltic countries

-2.9 4.5TOTAL 4,994 3.8 3.8 14,694 1.2 2.2

Store sales excl. VAT July - September 2008 January - September 2008

EUR million Change, all

stores Change, comp

stores EUR million Change, all

stores Change, comp

stores Estonia 100 10.7 8.4 291 9.5 7.4Latvia 162 23.5 19.4 474 21.3 18.2Lithuania 69 15.0 9.4 203 13.8 9.0

During the nine-month period, the share of private label sales increased to 6.8 percent (5.0) in the Baltic countries. Number of ICA stores in Sweden, including retailer-owned stores

TOTAL 331 17.6 13.7 968 16.0 12.8

Store profile December 2007 New Converted Closed September 2008Maxi ICA Stormarknad 60 4 1 65ICA Kvantum 119 1 -1 -2 117ICA Supermarket 460 3 -1 -6 456ICA Nära 743 3 1

Number of ICA and Rimi stores in Norway, including franchised stores

-11 736TOTAL 1,382 11 0 -19 1,374

Store profile December 2007 New Converted Closed September 2008ICA Maxi 25 25ICA Supermarked 79 1 80ICA Nær 275 2 6 -8 275Rimi 263 3 -6

Number of stores in Baltic countries

-6 254TOTAL 642 6 0 -14 634

Country December 2007 New Converted Closed September 2008Estonia 65 4 69Latvia 94 3 97

Lithuania 56 4 60TOTAL 215 11 226

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ICA AB INTERIM REPORT JANUARY – SEPTEMBER 2008 ICA AB Corporate identity number 556582-1559 Svetsarvägen 16 SE-171 93 Solna, Sweden Telephone +46-8-561 500 00 Fax +46-8-561 513 16 www.ica.se

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