Axfood Ab · OMXSTO:AXFO

Axfood Ab — Q3 2015 Earnings Presentation

20 slides from Axfood Ab's earnings presentation, 2015

  1. Slide 1: Axfood Q3, 2015

    Axfood Q3, 2015 Anders Strålman President and CEO 1

  2. Slide 2: Q3 – high leverage on strong growth

    Q3 – high leverage on strong growth  Net sales: SEK 10,412 m (9,756), +6.7%  Market growth: +2.7% (HUI-SCB, Jan-Aug 2015)  Strong results in all business units  Operating profit: SEK 552 m (453), +21.9% Operating profit margin 2

  3. Slide 3: Willys – very good sales growth and profitability

    Willys – very good sales growth and profitability  Net sales: SEK 5,560 m (5,243), +6.0%  Like-for-like sales: + 4.4%  Operating profit: SEK 275 m (243), +13.2%  Operating margin: 4.9% (4.6)  Increased number of customers  Willys+ 1.8 million members  Q4: establishing three new stores  Uppsa

  4. Slide 4: Hemköp – very strong sales growth

    Hemköp – very strong sales growth  Net sales: SEK 1,426 m (1,337), +6.7%  Like-for-like sales: + 4.6%  Operating profit: SEK 58 m (60), -3.3%  Operating margin: 4.1% (4.5)  Strengthening of customer programme  Q4: establishing two new stores  Skövde  Mall of Scandinavia, Stockholm Net sales

  5. Slide 5: Axfood Närlivs – increased profitability

    Axfood Närlivs – increased profitability  Net sales: SEK 734 m (677), +8.4%  Operating profit: SEK 74 m (64), +15.6%  Operating margin: 10.1% (9.5)  Q4: establishing one new cash-and- carry unit  Stockholm Net sales 5

  6. Slide 6: Dagab – strengthened by overall sales growth

    Dagab – strengthened by overall sales growth  Net sales: SEK 10,044 m (8,829), +13.8%  Distributed sales: SEK 6,539 m (5,574), +17.3%  Operating profit: SEK 177 m (105), +68.6%  Operating margin: 1.8% (1.2)  High delivery reliability  Improved efficiency  High share of private label: 27.2% Ne

  7. Slide 7: Market outlook

    Market outlook  Raised social security expenses for young employees  Uncertainty about the upcoming wage negotiations  Low food price inflation ‒ Approx. 2% expected for 2015 7

  8. Slide 8: Strategy for profitable growth

    Strategy for profitable growth  Develop the various concepts ‒ Modernize both Willys and Hemköp stores ‒ Attractive customer offerings  Implementation of e-commerce in Stockholm and Gothenburg in H1 2016  Development of modern supply chain organization  High share of private label 8

  9. Slide 9: Axfood's forecast for 2015

    Axfood’s forecast for 2015 An operating profit of around SEK 1,700 m 9

  10. Slide 10: Financial overview Q3, 2015

    Financial overview Q3, 2015 Karin Hygrell-Jonsson CFO 10

  11. Slide 11: Axfood Q3 2015

    Axfood Q3 2015  Strong sales growth and very good profitability Net sales, SEK m Operating margin, % Key ratios Q3 Q3 SEK m 2015 2014 Change 10,478 10,412 9,756 9,978 9,566 Net sales 10,412 9,756 6.7% Change in like-for-like sales, % 4.4% 0.9% 3.5 4.6 5.3 Operating profit 552 453 21.9% 4.1 3.7 3.4

  12. Slide 12: Willys Q3, 2015

    Willys Q3, 2015  Very good sales performance and earnings Net sales, SEK m Operating margin, % Key ratios Q3 Q3 5,691 5,560 SEK m 2015 2014 Change 5,243 5,416 5,261 Net sales 5,560 5,243 6.0% Change in like-for-like sales, % 4.4% 0.6% 3.8 4.6 4.9 4.4 4.0 Operating profit 275 243 13.2 3.3 Operating

  13. Slide 13: Hemköp Q3, 2015

    Hemköp Q3, 2015  Strong sales growth and good earnings Net sales, SEK m Operating margin, % Key ratios Q3 Q3 1,454 1,401 1,470 1,426 SEK m 2015 2014 Change 1,337 Net sales 1,426 1,337 6.7% Change in like-for-like sales, % 4.6% 2.5% 2.1 4.5 4.1 3.8 3.6 3.8 Operating profit 58 60 3.3% Operating margi

  14. Slide 14: Axfood Närlivs Q3, 2015

    Axfood Närlivs Q3, 2015  Very good sales performance and improved profitability Net sales, SEK m Operating margin, % Key ratios 717 734 Q3 Q3 677 SEK m 2015 2014 Change 632 595 10.1 Net sales 734 677 8.4% 9.5 8.2 Operating profit 74 64 15.6% 4.0 3.2 Operating margin, % 10.1% 9.5% 0.6 Number of stor

  15. Slide 15: Dagab Q3, 2015

    Dagab Q3, 2015  Earnings driven by good sales growth, efficiency and good cost control  High private label share Net sales, SEK m Operating margin, % Key ratios Q3 Q3 10,058 10,044 SEK m 2015 2014 Change 9,097 9,265 8,829 1.8 Net sales 10,044 8,829 13.8% 1.4 1.3 1.3 1.2 Distributed sales 6,539 5,5

  16. Slide 16: Joint-Group Q3, 2015

    Joint-Group Q3, 2015  Joint-Group functions: ‒ Executive Committee ‒ Finance/Accounting ‒ Corporate Communications ‒ Business Development ‒ HR ‒ IT  Operating profit: SEK -32 m (-19) 16

  17. Slide 17: Key ratios January – September, 2015

    Key ratios January – September, 2015  Balance sheet, total: SEK 10,025 m (9,039)  Cash flow operating activity: SEK 1,793 m (1,288)  Capex: SEK 555 m (474) ‒ Investment plan 2015: SEK 700 − 800 m Capital expenditure, SEK m 993 932 862 806 643 2010 2011 2012 2013 2014 17

  18. Slide 18: Financial targets & dividend policy

    Financial targets & dividend policy  The previous earnings target has been replaced with a forecast for 2015 of an operating profit of around SEK 1,700 m  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

  19. Slide 19: Summary financial development

    Summary financial development  High leverage on  strong sales growth  high private label share  cost control & efficiency in all segments  Gaining market shares 19

  20. Slide 20: Q&A

    Q&A 20

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