Axfood Ab · OMXSTO:AXFO
Axfood Ab — Investor Day (December 2019)
36 slides from Axfood Ab's investor day presentation, Dec 5, 2019
Slide 1: Capital Markets Day
Capital Markets Day 5 December 2019
Slide 2: Logistics of the future
Logistics of the future Klas Balkow, President and CEO, Axfood 4
Slide 3: Axfood – a leading Swedish food retailer
Axfood – a leading Swedish food retailer RTM Net sales SEK 50.1 bn 11,049 employees (FTE) Efficient sourcing and Customer reach logistics for all brands >4 million customers a week and channels 305 Group-owned stores Innovative development of 128 franchise Hemköp private label products Collaborating
Slide 4: Clear direction for the future
Clear direction for the future VISION Axfood will be the leader in good and sustainable food MISSION Axfood contributes to better everyday life where everyone can enjoy affordable, good and sustainable food BUSINESS CONCEPT A family of successful and distinctive food concepts in close collaboration
Slide 5: Strategic focus areas meet market trends
Strategic focus areas meet market trends Market trends Focus areas Customer offering Changes in Concern for climate Sector convergence and health driving demography and urbanization in larger cities changes in food Customer meeting preferences Expansion Supply chain Innovation and new E-commerce gai
Slide 6: Price value – a prerequisite
Price value – a prerequisite To meet future increasing demand ...the most efficient and sustainable in terms of price value and quality logistics solution is crucial and to stay competitive……… 9
Slide 7: Strategic focus areas
Strategic focus areas Customer Customer Expansion Supply chain Work approach Our people offering meeting Priorities 2019 ✓ Implement ✓ Start development of ✓ Increase common dark automated warehouse efficiency in store for online for store and online logistics orders picking 10
Slide 8: The journey towards a high level of automation has been well prepared
The journey towards a high level of automation has been well prepared Ambition to increase Q3 communication on Decision on Bålsta 2018 2019 2017 automation level and plans for a new, highly location centralize store and automized logistics Signing long-term home deliveries centre lease with NREP com
Slide 9: Logistics of the future
Logistics of the future Nicholas Pettersson, President, Dagab 14
Slide 10: One supply chain – from sourcing to both B2C and B2B customer deliveries
One supply chain – from sourcing to both B2C and B2B customer deliveries Customer reach Sustainable sourcing and Reliable logistics for successful innovative development of Warehousing customer meeting in stores private label products and home deliveries 15
Slide 11: Dagab in figures
Dagab in figures 1,400 negotiations 35,000 articles in the 600,000 parcels 6,000 deliveries yearly assortment daily every day 16
Slide 12: Speed to market – another prerequisite
Speed to market – another prerequisite • Demography • Customer centric analysis • Urbanization – part of assortment process • Customer behaviour • Increased capability within • E-commerce growth data driven decision making • Sustainability • Customer focus • Competition • Analysis of ticket items an
Slide 13: Today’s logistics
Today’s logistics Efficient Area-optimized Manual 18
Slide 14: Increased automation and integration of consumer and store picking
Dagab’s vision for Logistics of the future: Increased automation and integration of consumer and store picking
Slide 15: Store distribution and e-commerce picking
Three temperature zones Store E-commerce Store picking picking Home delivery distribution Articles in 20
Slide 16: Example of strategic steps already taken in preparing for Logistics of the future
Example of strategic steps already taken in preparing for Logistics of the future 1 2 Jönköping automated warehouse Årsta centralized distribution centre for home in operation since end of 2018 deliveries in operation since May 2019 21
Slide 17: Tomorrow’s logistics
Tomorrow’s logistics A common entity – optimal geographic location - Economy of scale - Effects from purchases - Improved transport conditions Automation of storage processes - Improved efficiency - Higher quality and customer benefits - Synergies between retail, convenience and e-commerce Bålsta Ne
Slide 18: Strategic and long-term partnerships
Strategic and long-term partnerships Building/Lease Transport Location Automation Management System Agreement in place Agreement in place Agreement in place Agreement in place The centre of gravity analysis Offers access to building An industry leader with the right Most proven experience in the sho
Slide 19: Agenda
Introduction Klas Balkow, President and CEO of Axfood and today’s moderator Logistics of the future • Nicholas Pettersson, MD, Dagab Agenda • Per Gifvas, Programme Head, Dagab • Helmut Prieschenk, CEO, Witron • Helena Blom, Transport Manager, Dagab Raymond Lundmark, Head of Logistics, Dagab Financia
Slide 20: Logistics of the future
Logistics of the future Per Gifvas, Programme Head, Dagab 25
Slide 21: Bålsta 2023
Bålsta 2023 26
Slide 22: Targets for new logistics centre
Targets for new logistics centre Increased capacity in order to A clear sustainability profile MEET GROWTH TARGETS LOWER CLIMATE IMPACT Higher delivery quality Increased efficiency for and service level LONG-TERM INCREASED COMPETITIVENESS CUSTOMER BENEFIT Combining store and Flexibility for consumer
Slide 23: Six facilities to be consolidated into one
Six facilities to be consolidated into one • From Bålsta, we reach 3 million consumers Today 2023 within an hour 115,000 sq m 104,000 sq m • Will handle 60% of Dagab’s storage volumes Skellefteå • Gives us increased opportunity for category picking • Optimizes purchasing to stock and creates Borläng
Slide 24: Several innovative sustainable measures being evaluated going forward
Several innovative sustainable measures being evaluated going forward 29
Slide 25: Our journey toward the new logistics centre
Our journey toward the new logistics centre 2019 2020 2021 2022 2023 Logistics centre programme fully Transport mobilized Transport Management System roll-out Management System pilot Re-scheduling Construction start Installation of Property First delivery in Bålsta automation initiated take over 30
Slide 26: Logistics of the future
Logistics of the future Helena Blom, Transport Manager, Dagab Raymond Lundmark, Head of Logistics, Dagab 54
Slide 27: Store distribution and e-commerce picking
Three temperature zones Store E-commerce Store picking picking Home delivery distribution Articles in 55
Slide 28: New transport management system (TMS)
New transport management system (TMS) Route simulation and planning Driver app • Sophisticated and data driven optimization algorithm • Covers all transport flows • Attractive e-commerce solution and driver app 56
Slide 29: Efficient e-commerce logistics solution supporting Stockholm, Mälardalen and nearby cities
Efficient e-commerce logistics solution supporting Stockholm, Mälardalen and nearby cities • Capacity for efficient handling of a wide and flexible assortment for online picking ‒ Fresh bread from in-house bake-off section ‒ Meal solutions • Automation in all temperature zones • Stockholm and Mälard
Slide 30: Six advantages for own haulage
Six advantages for own haulage 1 Quality 2 Access 3 Cost 4 Competence 5 Innovation 6 Sustainability 58
Slide 31: Sustainability targets
Sustainability targets • Diversity in the vehicle fleet – by 2025, no vehicle type should comprise more than half of the fleet. • Dagab aims to reduce carbon dioxide emissions for own transports by 20% by 2020 (base year 2015). • In e-commerce, a conversion plan for gas, electricity or electric hybr
Slide 32: We’ve come a long way....
We’ve come a long way.... • Biogas • Ethanol • Electric hybrid • RME • Diesel ...and in Bålsta we are building for the future! 60
Slide 33: Infrastructure for trucks in Bålsta
Infrastructure for trucks in Bålsta Maintenance Fuelling Electrification Workshop Diesel Electricity capacity Equipment HVO Charging Lifts RME Tires Ethanol Washing Compressed biogas Liquid biogas 61
Slide 34: And it is happening right now!
And it is happening right now! 62
Slide 35: Logistics of the future
Logistics of the future Klas Balkow, President and CEO 63
Slide 36: World-class logistics centre
World-class logistics centre Establishing platform for sustainable and profitable growth Well proven technology in a unique setup combining store and e-commerce picking in three temperature zones Flexible solution for meeting volume growth in store and online Strategic long-term partnerships in plac