Axfood AB · OMXSTO:AXFO
Axfood AB — FY2010 Earnings Presentation
23 slides from Axfood AB's earnings presentation, February 2011
Slide 1: Axfood AB Jan-Dec 2010
Axfood AB Jan — Dec, 2010 axtood
Slide 2: Objectives and outcome 2010
Objectives and outcome 2010 Objectives 2010 Outcome Operating profit at least Operating profit +7.2% in level with 2009 Profitable growth Sales growth +5.8% The board proposes Dividend to shareholders dividend of SEK 12 per of at least 50% of profit share - 73% after tax of profit after tax 2
Slide 3: Willys January - December 2010
Willys January - December 2010 • Strong results and stable sales development • Increased market share – Growing number of stores – Improved shopping experience – Right price and product mix 3
Slide 4: Hemköp January - December 2010
Hemköp January - December 2010 • Positive result and like for like sales – Successful marketing strategy • New store in Stockholm City • EBIT margin 0.9% • Targeting EBIT margin of 2% 2011 4
Slide 5: PrisXtra January - December 2010
PrisXtra January - December 2010 • Unsatisfying development • Two stores affected by major road work • Result affected by one time cost of SEK 14 m 5
Slide 6: Axfood Närlivs January - December 2010
Axfood Närlivs January - December 2010 • Increased sales and market share – New agreements • EBIT margin in line with expectations 6
Slide 7: Dagab January - December 2010
Dagab January - December 2010 • Strong service level • Good cost control • Satisfying cooperation with the Vi-stores 7
Slide 8: Market trends 2011
Market trends 2011 • Continued tough competition • Price conscious customers • Average 2-3 % food price inflation • Decent outlook for Swedish economy 8
Slide 9: Offensive investment strategy 2011
Offensive investment strategy 2011 • Approximately 15 new stores • Modernization of about 40 stores • Continued implementation of new business system 9
Slide 10: Strategy for profitable growth
Strategy for profitable growth • Optimize store operations • Stimulate sales growth • Good cost control and efficiency • Increased privat label share 10
Slide 11: Axfood's goal for 2011
Axfood´s goal for 2011 To achieve an operating profit at least at the same level as 2010 11
Slide 12: Financial overview
Financial overview Jan – Dec, 2010 12
Slide 13: Axfood AB January - December 2010
Axfood AB January - December 2010 • Best result ever • Good sales development Group, SEK m 2010 2009 Change Net sales 34,260 32,378 +5.8% Operating profit 1,209 1,128 +7.2% Operating margin 3.5% 3.5% - 13
Slide 14: Willys January - December 2010
Willys January - December 2010 Sales Operating profit +5.8% +5.6% 18,613 17,589 772 731 -10 -09 -10 -09 2010 2009 Operating margin 4.1% 4.2% 14
Slide 15: Hemköp January - December 2010
Hemköp January - December 2010 Sales Operating profit +60.7% 4,978 5,335 45 28 -10 -09 -10 -09 2010 2009 Operating margin 0.9% 0.5% 15
Slide 16: PrisXtra January - December 2010
PrisXtra January - December 2010 • Decrease in sales for two stores due to major road work • Result affected by one time cost of SEK 14 m PrisXtra, SEK m 2010 2009 Change Net sales 637 685 - 7.0% Operating profit -5 6 - Operating margin -0.8% 0.9% - 16
Slide 17: Axfood Närlivs January - December 2010
Axfood Närlivs January - December 2010 • Good sales developement – New agreements Axfood Närlivs, SEK m 2010 2009 Change Net sales 5,847 5,611 + 4.2% Operating profit 113 132 - 14.4% Operating margin 1.9% 2.4% - 17
Slide 18: Dagab January - December 2010
Dagab January - December 2010 • Stable development • Good cost control and efficiency Dagab, SEK m 2010 2009 Change Net sales 25,701 24,052 + 6.9% Operating profit 189 147 + 28.6% Operating margin 0.7% 0.6% - 18
Slide 19: Other January - December 2010
Other January - December 2010 • Sales: 204 Mkr (174) • Operating profit: 95 Mkr (84) 19
Slide 20: Key ratios January - December 2010
Key ratios January - December 2010 • Balance sheet, total: SEK 7,664 m (7,173) • Cash flow operating activity: SEK 1,365 m (1,558) • Capex: SEK 862 m (633) • Investment plan 2011: SEK 900 - 1,000 m 20
Slide 21: Financial targets & dividend policy
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% 21
Slide 22: Summary
Summary • Best result ever • Profitable growth 22
Slide 23: Time for questions!
Time for questions! axtood