Axfood AB · OMXSTO:AXFO
Axfood AB — Q3 2007 Earnings Presentation
28 slides from Axfood AB's earnings presentation, Oct 2, 2007
Slide 1: Axfood AB 1 January – 30 September 2007
Axfood AB 1 January – 30 September 2007 A stable and profitable development
Slide 2: Axfood AB 1 January–30 September 2007
Axfood AB 1 January–30 September 2007 Strong earnings: SEK 857 m (938 including SEK 89 m from the Vi-settlement) A stable and good EBIT margin: 4.0% (4.0) Consolidated sales for the period: SEK 21,536 m (21,424) 2 OCTOBER 2007 | AXFOOD
Slide 3: Axfood's priority remains profitable growth
Axfood´s priority remains profitable growth Focus on – Sales and profitability in existing stores – Improvement and development of store concepts – Strenghtening our position – New opportunities 3 OCTOBER 2007 | AXFOOD
Slide 4: Hemköp Q4 and beyond
Hemköp Q4 and beyond New marketing mix New stores New price strategy and product mix Loyalty card 4 OCTOBER 2007 | AXFOOD
Slide 5: Willys Q4 and beyond
Willys Q4 and beyond Renewal of the concept New marketing mix New non-food assortment 5 OCTOBER 2007 | AXFOOD
Slide 6: Private label strategy
Private label strategy 25% in 2010 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 Q3 2007 6 OCTOBER 2007 | AXFOOD
Slide 7: Outlook Q4
Outlook Q4 Rising raw material costs will affect consumer prices Continued focus on profitable growth Unchanged forecast for 2007 7 OCTOBER 2007 | AXFOOD
Slide 8: Forecast
Forecast Axfood confirms its previously issued forecast for the year: Operating profit for 2007 to be in level with 2006, excluding the compensation of SEK 89 m from the settlement with the Vi retailers' association. 8 OCTOBER 2007 | AXFOOD
Slide 9: Financial Performance Jan - Sept 2007
Financial Performance Jan - Sept 2007 9 OCTOBER 2007 | AXFOOD
Slide 10: Axfood AB 1 January–30 September 2007
Axfood AB 1 January–30 September 2007 Continued positive and stable operating result: SEK 857 m (938) The EBIT-margin for the first nine months 4.0% (4.0) Consolidated sales for the period: SEK 21,536 m (21,424) 10 OCTOBER 2007 | AXFOOD
Slide 11: Operating profit and margin for the period
Axfood AB 1 January – 30 September 2007 Operating profit for the period: SEK 857 m (938, incl. SEK 89 m from the settlement with Vi) Operating margin: 4.0% (4.0) Operating profit in Q3: SEK 320 m (437, incl. the Vi settlement) Operating margin in Q3 : 4.4% (4.8) 11 OCTOBER 2007 | AXFOOD
Slide 12: Consolidated sales for the period
Axfood AB 1 January – 30 September 2007 Consolidated sales for the period: SEK 21,536 m (21,424) Consolidated sales in Q3: SEK 7,201 m (7,226) Retail sales for Axfood’s wholly owned stores decreased 0.3% during the period Like-for-like sales rose during the period 0.1% 12 OCTOBER 2007 | AXFOOD
Slide 13: Performance 1 January–30 September 2007: Willys
Performance 1 January–30 September 2007 Sales for the Willys group in the period: SEK 11,349 m (11,236) Sales for the Willys group rose 1.0 % during the period. Like-for-like sales rose 0,6 % Sales in Q3: SEK 3,759m (3,760) Operating profit for the period was SEK 488 m (423).The EBIT margin was 4.3
Slide 14: Performance 1 January–30 September 2007: Hemköp
Performance 1 January–30 September 2007 Total sales for Hemköp in the period SEK 4,178 m (4,340) Sales for Hemköp's stores, wholly owned and franchises, rose 0.7 % during the period. Like-for-like rose 0.0% Sales in Q3: SEK 1,359 m (1,403) Operating profit for the period: SEK 51 m (62). Operating ma
Slide 15: Performance 1 January–30 September 2007: Närlivs
Performance 1 January–30 September 2007 Närlivs Sales amounted in the period to SEK 4,062 m (4,086). 149 stores Sales in Q2: SEK 1,426 m (1,463). Operating profit for the period was SEK 78 m (88) 230 stores The operating margin for the period was 1.9 % (2.2%) Operating profit in Q3: SEK 36 m (43) 15
Slide 16: Performance 1 January–30 September 2007: Dagab & others
Performance 1 January–30 September 2007 & others Dagabs sales during the period totalled SEK 15,597 m (15,173) Sales in Q3: SEK 5,135 m (5,084) Operating profit for Dagab and others was for the period: SEK 240 m (365, including the settlement from Vi). Operating profit for Dagab and others for Q3 :
Slide 17: Condensed balance sheet and cash flow statement
Condenced balance sheet and condenced cash flow statement Balance sheet total SEK 6,380 m (6,142) Cash flow operating activity: SEK 822 m (809) Capital expenditure: SEK 387 m (427) Equity ratio: 30.8 percent (36.3) Return on capital: 38.9 percent (36.0) 17 OCTOBER 2007 | AXFOOD
Slide 18: Summary financial development
Summary financial development Stable and positive result Continued good EBIT margin, 4 percent Unchanged forecast for 2007 18 OCTOBER 2007 | AXFOOD
Slide 19: Thank you for your attention
Thank you for your attention Time for questions 19 OCTOBER 2007 | AXFOOD
Slide 20: Appendix
Axfood AB 1 January – 30 September 2007 Appendix 20 OCTOBER 2007 | AXFOOD
Slide 21: Key ratios
Key ratios Jul.-Sep. Jan.-Jul. Jan.-Dec. SEK m 2007 2006 2007 2006 2006 Net sales 7 201 7 226 21 536 21 424 28 808 Operating profit 320 437 857 938 1 204 Operating margin, % 4,4 4,8 4,0 4,0 3,9 Profit after financial items 311 431 831 922 1 183 Profit after tax 224 311 598 664 852 Earnings per share
Slide 22: Change in store structure
Change in store structure Establish- Sales/ Conversions Dec. 2006 ment Acquisitions closures to/from Sep. 2007 Hemköp 76 1 1 - -1 77 Willys1) 148 2 - -12 1 139 Total, wholly owned 224 3 1 -12 - 216 Hemköp franchises 82 - 2 - - 84 1) Of which Willys hemma 43 - - -8 - 35 22 OCTOBER 2007 | AXFOOD
Slide 23: Net sales, own and franchise
Net sales, own and franchise Jul.-Sep. 2007, Like-for-like Jan.-Sep. Like-for-like SEK m % sales % 2007, SEK m % sales % Hemköp 1 345 -3,2 -2,6 4 138 -3,8 -1,2 Hemköp franchise 917 5,9 0,1 2 712 8,5 1,9 Hemköp total 2 262 0,3 -1,5 6 850 0,7 0,0 Willys total 3 759 0,0 -0,1 11 348 1,0 0,6 Total 6 021
Slide 24: Net sales, per business unit
Net sales, per business unit Jul.-Sep. Jan.-Sep. Jan.-Dec. SEK m 2007 2006 2007 2006 2006 Hemköp 1 359 1 403 4 178 4 340 5 829 Willys 3 759 3 760 11 349 11 236 15 115 Axfood Närlivs 1 426 1 463 4 062 4 086 5 465 Dagab 5 135 5 084 15 597 15 173 20 572 Other 306 224 841 693 947 Internal sales -4 784 -
Slide 25: Operating profit for the period (EBIT), broken down by business unit
Operating profit for the period (EBIT), broken down by business unit Jul.-Sep. Jan.–Sep. Jan.–Dec. SEK m 2007 2006 2007 2006 2006 Hemköp 12 32 51 62 79 Willys 185 168 488 423 558 Axfood Närlivs 36 43 78 88 108 Dagab 33 55 88 158 226 Other 54 139 152 207 233 Operating profit for the period, total 320
Slide 26: Condensed balance sheet
Condensed balance sheet SEK m 9/30/2007 9/30/2006 12/31/2006 Assets Goodwill 1 181 1 131 1 131 Interest-bearing receivables 25 38 24 Financial non-current assets 28 31 31 Other non-current assets 1 693 1 722 1 736 Total non-current assets 2 927 2 922 2 922 Inventories 1 465 1 421 1 473 Accounts rece
Slide 27: Condensed balance sheet, cont
Condensed balance sheet, cont Shareholders' equity and liabilities Equity attributable to equity holders of the parent 1 968 2 232 2 420 Total shareholders' equity 1 968 2 232 2 420 Interest-bearing non-current liabilities 586 378 385 Noninterest-bearing non-current liabilities 166 159 157 Total non
Slide 28: Condensed cash flow statement
Condensed cash flow statement Jan.-Sept. Jan.-Dec. SEK m 2007 2006 2006 Operating activities –Cash flow from operating activities before changes in working capital before paid tax 1 156 1 205 1 693 –Paid tax -322 -621 -684 –Changes in working capital -12 225 151 Cash flow from operating activities 8