Axfood Ab · OMXSTO:AXFO
Axfood Ab — Investor Day (December 2021)
101 slides from Axfood Ab's investor day presentation, December 2021
Slide 1: Building a platform for continued growth
Building a platform for continued growth Capital Markets Day 2021
Slide 2: Today's presenters
Axfood Capital Markets Day 2021 Building a platform for continued growth Today’s presenters Klas Balkow Anders Lexmon Thomas Evertsson Simone Margulies President and CEO, Axfood CFO, Axfood Managing Director, Willys Managing Director, Hemköpskedjan Eva Pettersson Nicholas Pettersson Carl Stenbeck An
Slide 3: Today's agenda
Axfood Capital Markets Day 2021 Building a platform for continued growth Today’s agenda Part 1 Part 2 Building a platform for continued growth Strategic partnership with Mathem Klas Balkow, President and CEO, Axfood Carl Stenbeck, Head of Strategy and Business Development, Axfood Axfood’s brands and
Slide 4: Building a platform for continued growth
Axfood Capital Markets Day 2021 Building a platform for continued growth Building a platform for continued growth Klas Balkow, President and CEO Axfood Capital Markets Day 2021
Slide 5: Building a platform for continued growth
Axfood Capital Markets Day 2021 Building a platform for continued growth Building a platform for continued growth • Proven track record, strong competitive position • Investments in a best-in-class logistics platform • Compelling deal with Bergendahls • Ambition to lead in sustainability 5
Slide 6: More quality of life for all
Axfood Capital Markets Day 2021 Building a platform for continued growth PURPOSE More quality of life for all VISION To be the leader in affordable, good and sustainable food BUSINESS CONCEPT A family of different concepts in collaboration 6
Slide 7: More quality of life for all
Axfood Capital Markets Day 2021 Building a platform for continued growth More quality of life for all Axfood’s newly formulated purpose TARGET OBJECTIVES FOR 2030 To be Sweden’s To be the strongest To have created To lead the development most inclusive force for sustainable a healthier towards the s
Slide 8: Strategy
Axfood Capital Markets Day 2021 Building a platform for continued growth Strategy To be the leader in affordable, good and sustainable food, we are pursuing a strategy of growth-promoting and efficiency enhancing priorities. Customer offering Supply chain Customer meeting Work approach Expansion Our
Slide 9: A proven track record of growth
Axfood Capital Markets Day 2021 Building a platform for continued growth A proven track record of growth Net sales, SEK billion Earnings per share, SEK* CAGR** 5% CAGR** 8% 53.7 54.5 9.12 9.38 50.7 48.1 46.0 7.87 43.4 7.41 41.2 7.02 6.98 37.5 38.5 6.48 34.8 36.3 5.22 4.70 4.25 4.30 2011 2012 2013 20
Slide 10: A broad presence and favorable market positions
Axfood Capital Markets Day 2021 Building a platform for continued growth A broad presence and favorable market positions Group common sourcing and logistics Group common IT-systems Traditional grocery • Stores in central urban locations • Stores in shopping centres • Stores in residential areas Disc
Slide 11: A strong player in wholesale with Dagab
Axfood Capital Markets Day 2021 Building a platform for continued growth A strong player in wholesale with Dagab Food retail Service trade Restaurant, food service Online pure players Pharmacy Quick commerce Cashier-less 11
Slide 12: An evolving landscape
Axfood Capital Markets Day 2021 Building a platform for continued growth An evolving landscape Higher demands from both the Intense competition and new Digitalization and new Consumers are becoming more industry and consumers on players on the market are ecosystems changes the conscious about how fo
Slide 13: Well positioned for growth
Axfood Capital Markets Day 2021 Building a platform for continued growth Well positioned for growth • Strong concepts and close collaboration • Strong tech foundation and analytics • Higher relative market share online • Positive force for change in sustainability • Leading position in the discount
Slide 14: Growth in sight
Axfood Capital Markets Day 2021 Building a platform for continued growth Growth in sight 14
Slide 15: Leading the way to a more sustainable food system
Axfood Capital Markets Day 2021 Building a platform for continued growth Leading the way to a more sustainable food system 15
Slide 16: Strong platform for sustainability leadership
Axfood Capital Markets Day 2021 Building a platform for continued growth Strong platform for sustainability leadership Food Environment People A wide and varied assortment of Low-carbon business, net zero Targets for diversity and inclusion sustainability-labelled products emissions in own operation
Slide 17: Driving positive change in sustainability
Axfood Capital Markets Day 2021 Building a platform for continued growth Driving positive change in sustainability GHG emissions* Share of sustainability- Share of -76% 50/50 labelled products food waste Gender balance in +1.3pp -27% the Group Executive Committee 30.0% 1.72% 27.0% 28.3% Target 1.26%
Slide 18: A family of distinctive concepts in collaboration
Axfood Capital Markets Day 2021 Building a platform for continued growth A family of distinctive concepts in collaboration Willys, with Sweden’s cheapest bag Hemköp offers an attractively Snabbgross is one of Sweden’s Dagab runs and develops the of groceries, is the leading discount priced, wide ass
Slide 19: Axfood Capital Markets Day 2021 Building a platform for continued growth
Axfood Capital Markets Day 2021 Building a platform for continued growth 19
Slide 20: Willys
Axfood Capital Markets Day 2021 Willys Willys Thomas Evertsson, Managing Director Willys Axfood Capital Markets Day 2021
Slide 21: Consistent market outperformance
Axfood Capital Markets Day 2021 Willys Consistent market outperformance Growth vs total market Willys (excluding Eurocash) The Swedish food retail market* 13.4% 7.3% 7.6% 5.7% 4.7% 4.8% 3.8% 3.0% 3.1% 3.0% 2.2% 2.3% 2016 2017 2018 2019 2020 2021** * Source: Statistics Sweden for 2016 and 2017, there
Slide 22: Building a stronger brand
Axfood Capital Markets Day 2021 Willys Building a stronger brand Penetration among Swedish households (%)* #1 The fastest growing brand in ranking of Sweden’s 50 most valuable brands (Brand Finance) Willys Main competitor* 52% 47% 46% Top 5 strongest brands in retail 41% 2013 2014 2015 2016 2017 201
Slide 23: Benefitting from unique and favorable positioning
Axfood Capital Markets Day 2021 Willys Benefitting from unique and favorable positioning • Willys is a unique concept with a wide and varied assortment and low prices • Favourable position between hard discount and hypermarkets • Sweden’s cheapest bag of groceries, significant price gap to the close
Slide 24: More than just low prices
Axfood Capital Markets Day 2021 Willys More than just low prices • Well-known brands, attractive private labels • Wide organic and sustainable assortment • All stores certified with ”Good Environmental Choice” (Bra Miljöval) for food retail stores • Digital services with self-scanning, mobile paymen
Slide 25: Leveraging loyalty to drive growth
Axfood Capital Markets Day 2021 Willys Leveraging loyalty to drive growth • Willys Plus is Willys’ fully digital customer loyalty programme Number of members in • High share of customer identification creates conditions for Willys Plus (million) improved relevance and personalisation • High share of
Slide 26: Modernising and establishing new stores
Axfood Capital Markets Day 2021 Willys Modernising and establishing new stores Skellefteå Umeå 20-25 modernizations per store Fagersta Söderhamn New store establishments Stockholm: Säffle Häggvik Väsby Continued e-commerce rollout Falköping Sköndal Orminge Göteborg: Älvängen Vagnhärad WH Altplatsen
Slide 27: Strong online offering
Axfood Capital Markets Day 2021 Willys Strong online offering • Willys has a strong e-commerce offering with a distinctive and clear market position ‒ Same prices online as in physical stores ‒ Focus on Click and Collect ‒ Transparent fee model • Click and Collect through Willys Hämta, clear differe
Slide 28: Outperforming online
Axfood Capital Markets Day 2021 Willys Outperforming online • Willys has been significantly outperforming Growth vs total the online market in recent years market online • Estimates to reach break even in terms of profitability within e-commerce during 2021 Willys chain ‒ High share of orders throug
Slide 29: Opportunities with Willys Hemma
Axfood Capital Markets Day 2021 Willys Opportunities with Willys Hemma • Smaller format Willys stores in residential areas – city centres, shopping malls, smaller cities • Significantly lower prices than competitors within the supermarket segment • Potential for growth and additional store establish
Slide 30: Solid Eurocash outlook
Axfood Capital Markets Day 2021 Willys Solid Eurocash outlook • Difficult situation during pandemic • Strong focus on investing in the concept and modernising stores to build an improved platform for the future, new store in Långflon • Solid outlook for border trade also after pandemic 67% Price ind
Slide 31: Clear path for continued growth
Axfood Capital Markets Day 2021 Willys Clear path for • Track record of market outperformance • Unique concept and improved brand equity, clear plans to strengthen market position and leadership in the discount continued segment • High pace in store establishments and modernizations, growth opportun
Slide 32: Hemköp and Tempo
Axfood Capital Markets Day 2021 Hemköp and Tempo Hemköp and Tempo Simone Margulies, Managing Director Hemköpskedjan Axfood Capital Markets Day 2021
Slide 33: Hemköp
Axfood Capital Markets Day 2021 Hemköp and Tempo Hemköp Hemköp is a growing supermarket retailer in the traditional grocery segment. Hemköp offers an attractively priced and wide assortment with a rich offering of fresh products. 200 Group-owned and franchise stores with optimized ownership structur
Slide 34: Hemköp has outperformed competition
Axfood Capital Markets Day 2021 Hemköp and Tempo Hemköp has outperformed competition Store sales and growth Hemköp consolidated net sales and operating margin Total store sales growth Hemköp, % ICA Supermarket growth, % Food retail index growth, %* Operating margin, % SEK billion Total store sales H
Slide 35: Attractive store locations
Axfood Capital Markets Day 2021 Hemköp and Tempo Attractive store locations Population trend Hemköp • Hemköp has attractive store locations 2016-2021 market share and is outperforming in the areas with the fastest growth and close to cities Larger cities 8% 11% • Hemköp and Tempo stores are located
Slide 36: Focus areas
Axfood Capital Markets Day 2021 Hemköp and Tempo Focus areas Hemköp’s ambition is to be the best in every local market with the purpose of making life easier for all people who love food and want to eat good food every day. An attractive The best customer customer offering with meeting through an fo
Slide 37: A new store concept
Axfood Capital Markets Day 2021 Hemköp and Tempo A new store concept • To ensure the best customer experience, a new store concept has been developed • The new concept reinforces Hemköp’s positioning within perishable food • A simplified customer journey with optimized flow and self checkout • A mod
Slide 38: Bringing customer value with meal solutions
Axfood Capital Markets Day 2021 Hemköp and Tempo Bringing customer value with meal solutions INNOVATION, SIMPLICITY AND SCALABILITY Developed packed ready meals New concept for fresh salads and Developed concept for warm and branded as private label, launched sandwiches prepared in store, launched c
Slide 39: Klubb Hemköp
Axfood Capital Markets Day 2021 Hemköp and Tempo Klubb Hemköp • Launched in late 2020, the loyalty programme Klubb Hemköp is a platform for CRM and highlights sustainability agenda • Currently 1.7 million members with an increased degree of loyalty • More than 70 percent active customers and member
Slide 40: Broad offering online
Axfood Capital Markets Day 2021 Hemköp and Tempo Broad offering online E-commerce through 71 stores (19 by year-end 2019) Home delivery and Click and Collect Same positioning and offering online as in stores High pace of expansion planned for 2022 Further development of omni-channel experience 40
Slide 41: Accelerated online rollout and strong growth
Axfood Capital Markets Day 2021 Hemköp and Tempo Accelerated online rollout and strong growth Number of Hemköp stores Growth vs total with online offering market online Hemköp chain +52 The Swedish food retail market* 71 129% 48 95% 93% 60% 19 16% 22% Year- Year- Current 2019 2020 2021** end 2019 en
Slide 42: Sustainability
Axfood Capital Markets Day 2021 Hemköp and Tempo Sustainability Halve food waste by 2025 • Dynamic price reduction • Donations Klubb Hemköp • Guiding communication • Rewarding all purchases and doubling Energy and cooling the reward for sustainable choices • Green electricity in stores • LED lightin
Slide 43: Tempo
Axfood Capital Markets Day 2021 Hemköp and Tempo Tempo Tempo is a mini-mart format of retailer-owned stores. At Tempo stores customers are greeted in a familiar environment offering good food and personal service. Tempo’s positioning is to be the good neighbour. 130 Franchise owned 4,5k Approximate
Slide 44: Eventful year, strong plan ahead
Axfood Capital Markets Day 2021 Hemköp and Tempo • Continued outperformance of competition and adaptation Eventful year, to consumers’ changed shopping behaviours during pandemic • Clear strategy in place with new organisation and operating model strong plan • Continued store expansion, new store co
Slide 45: Snabbgross
Axfood Capital Markets Day 2021 Snabbgross Snabbgross Eva Pettersson, Managing Director Snabbgross Axfood Capital Markets Day 2021
Slide 46: A unique position
Axfood Capital Markets Day 2021 Snabbgross A unique position Snabbgross is one of Sweden’s leading restaurant wholesalers with a customer base of restaurants, fast food operators and cafés. Snabbgross offers personal service, accessibility and quality at its stores and online. 27 Cash and carry stor
Slide 47: A history of growth
Axfood Capital Markets Day 2021 Snabbgross A history of growth Net sales, SEK million CAGR +5% 3,631 3,443 3,417 3,241 2,874 2,984 2016** 2017** 2018 2019 2020 2021* * Rolling twelve months to 30 September 2021. ** Pro forma 47
Slide 48: A diverse customer base
Axfood Capital Markets Day 2021 Snabbgross A diverse customer base Customer base Average ticket breakdown value (SEK) Number of B2B customers by segment Share of sales by B2B customer segment 11,000 78k Active B2B customers 15,200 26% 1,800 20% 5,700 45% 4,600 9% 52,500 20% Approximate share of sale
Slide 49: Stronger post Covid-19
Axfood Capital Markets Day 2021 Snabbgross Stronger post Covid-19 Snabbgross’ R12M value share on Number of unique the private food service market* B2B customers +8% 20% 17,4% 15% 13,5% 10% 5% 0% Dec’ 19 Sep ’21 *Source: Delfi Marknadspartner AB. Delfi wholesaler index (private market), Sep -20 - Se
Slide 50: Snabbgross Club
Axfood Capital Markets Day 2021 Snabbgross Snabbgross Club 50
Slide 51: Significant opportunity with Snabbgross Club
Axfood Capital Markets Day 2021 Snabbgross Significant opportunity with Snabbgross Club NEW CONSUMER CONCEPT WITH UNIQUE OFFERING • Unique and attractively priced assortment, bulk packaging. • Membership-based, free initial trial period of 3 months and then 299 SEK/year. • Targeting customers who li
Slide 52: Snabbgross Club uses same base as Snabbgross
Axfood Capital Markets Day 2021 Snabbgross Snabbgross Club uses same base as Snabbgross • B2C-focused membership campaigns • B2C-focused partner deals • Assortment adapted to B2C • Segmented customer offerings • Value for money restaurant assortment • Campaigns • Targeted campaign events • B2B-only
Slide 53: Focus areas
Axfood Capital Markets Day 2021 Snabbgross Focus areas New store Assortment establishments development and elevating the and price value existing store base Digitalization Developing the and continued Snabbgross Club profitable growth concept in e-commerce 53
Slide 54: City Gross
Skriv text här City Gross Axfood Capital Markets Day, 16 December 2021 Anders Wennerberg, Managing Director City Gross
Slide 55: This is City Gross
This is City Gross We love food and go all in for our customers. 5,000 sq. m. 1.5 million retail area/store customers/week SEK 9,709 m 1.3 million in net sales 20/21 PRIO members 2,800 45,000 employees items in assortment
Slide 56: 100 years of history
“We want to establish a commercially sustainable ownership 100 years of history approach for future generations. Elisabeth Bergendahl 1922 1960s 2000s 2020s Mikael Bergendahl New partnerships are formed An expansion journey begins Partnership with begins importing butter, and fresh produce becomes a
Slide 57: Hypermarket segment
Hypermarket segment Food retail’s hypermarket segment includes Ica Maxi, Stora Coop and City Gross. In the hypermarket segment, we have a great opportunity to challenge our competitors with large selection of fresh products and highly affordable prices on colonial and special goods. 13.3% 24.9% 61.9
Slide 58: Strategy
Vision Sweden’s most satisfied food customers Business concept Fresh food hall and wholesale under the same roof Concept Inspiring a passion for food from fresh food halls and wholesale with affordable prices Fresh food hall with artisanal Wholesale with Large selection of products sold in-store aff
Slide 59: Our offering
SUSTAINABLE ASSORTMENT Our offering Swedish meat, fresh and cut in-store! Affordable prices Trained butchers in all stores – customers With competitive prices on colonial and can ring the bell and have their wishes special goods, our customers have the met. We offer 250 different cuts, meaning oppor
Slide 60: We take responsibility
We take responsibility 63% reduction of meat waste with SWEDISH & LOCAL FOOD WASTE vacuum-packed We protect the Swedish countryside and By 2025, food waste is to be reduced to 1%. meat without support our farmers. In the next two years, This initiative includes continued work with waste stations and
Slide 61: 2020/2021 in figures
2020/2021 in figures Performance Net sales Number of stores SEK 9,709 m 42(+2) Sales growth 3.5% Sales growth during the Covid-19 pandemic First restrictions Like-for-like sales 2.2% Restrictions ease sep-19 apr-20 jul-21 apr-21 maj-21 jun-21 sep-21 nov-19 dec-19 01-maj dec-20 oktober 2020-01-01 mar
Slide 62: E-commerce and digital trend
E-commerce • Hand-picked groceries, meal kits and catering • Hand-picked grocery shopping increased by 200% in 2020/2021 • Meal kits with recipes developed by our culinary expert Sara Ekman • The same price online as in-store Digital trend • New technological solutions creating flexibility • Improve
Slide 63: Expansion
Our path forward Reduce food waste, Food retail – Sweden’s most Expansion plastic & packaging popular employer In the next five years, City Gross aims to grow by 15 additional stores. With access to Dagab’s logistics and warehouse centre, new opportunities are also being created to grow further nort
Slide 64: Axfood new partner to Mathem
Axfood Capital Markets Day 2021 Axfood new partner to Mathem Axfood new partner to Mathem • Axfood and Mathem are entering into a strategic partnership with Axfood’s divestment of Mat.se in exchange for Mathem shares, a strong pure-play online retailer with home delivery. • At the same time, Mathem
Slide 65: Axfood's comprehensive online offering
Axfood Capital Markets Day 2021 Axfood new partner to Mathem Axfood’s comprehensive online offering Omnichannel Pure e-commerce >95% Axfood’s consumer reach in Sweden with e-commerce Axfood has a strong omnichannel offering with attractive stores in prime locations Shareholding amounting to 16.5% an
Slide 66: Mat.se and Mathem deal highlights
Axfood Capital Markets Day 2021 Axfood new partner to Mathem Mat.se and Mathem deal highlights • Strategic partnership between Axfood and Mathem, • Axfood will be represented on Mathem’s Board of Axfood divests Mat.se in exchange for shares in Directors with one director. Mathem corresponding to a s
Slide 67: The future of logistics
Axfood Capital Markets Day 2021 The future of logistics The future of logistics Nicholas Pettersson, Managing Director Dagab Axfood Capital Markets Day 2021
Slide 68: A successful consolidation seven years ago
Axfood Capital Markets Day 2021 The future of logistics A successful consolidation seven years ago Dagab Wholesaling, grocery trade Axfood Närlivs Wholesaling, service trade Axfood Sverige Purchasing, private labels 68
Slide 69: The role of Dagab
Axfood Capital Markets Day 2021 The future of logistics The role of Dagab • Dagab is responsible for Axfood’s assortment, purchasing and logistics. • As a support company Dagab plays a key role in Axfood’s work on continuously streamlining the product flow from assortment and purchasing to warehousi
Slide 70: Always in motion towards..
o c Axfood Capital Markets Day 2021 The future of logistics h - p r Always in motion towards..… e s e n Smart and modern product flow for stores and e-commerce t a Efficient and attractive assortment t i o Leading portfolio of competitive private label products n e Green transition to an affordable
Slide 71: A data-driven supplier with complete solution
Axfood Capital Markets Day 2021 The future of logistics A data-driven supplier with complete solution 71
Slide 72: Digital development with the customer in focus
Axfood Capital Markets Day 2021 The future of logistics Digital development with the customer in focus 72
Slide 73: A new logistics platform
Axfood Capital Markets Day 2021 The future of logistics A new logistics platform Today 2023-2025 Central and regional warehouses Dark stores Perishables and fruit and vegetable warehouses Skellefteå Borlänge Örebro Årsta Sätra Bålsta Jordbro Backa Frölunda Jönköping Backa Jönköping Hässleholm Hässle
Slide 74: Road to the new logistics platform
Axfood Capital Markets Day 2021 The future of logistics Road to the new logistics platform 2019 2020 2021 2022 2023 2024 2025 Automated perishable Fully warehouse in Jönköping operational Automated logistics Construction Installation of Property Re-scheduling, centre in Bålsta start automation initi
Slide 75: Timeline the Bålsta logistics centre
Axfood Capital Markets Day 2021 The future of logistics Timeline the Bålsta logistics centre 2019 2020 2021 2022 2023 Fully operational First deliveries Re-scheduling Construction Installation of Property Dry goods start automation initiated takeover Chilled/fresh Frozen E-commerce 75
Slide 76: Axfood Capital Markets Day 2021 The future of logistics
Axfood Capital Markets Day 2021 The future of logistics 76
Slide 77: The Bålsta logistics centre
Axfood Capital Markets Day 2021 The future of logistics The Bålsta logistics centre Facts • Area of 104,000 sq. m., corresponding to 4.5x the size of Stockholm Globe • Building height 30 metres (max) • More steel used than in the Eiffel tower • More than 170 km of power cable • Sprinkler tank with 2
Slide 78: Bålsta will supply both stores and e-commerce
Axfood Capital Markets Day 2021 The future of logistics Bålsta will supply both stores and e-commerce Shipping store Shipping store Receiving/shipping Receiving dry Receiving fresh delivery delivery frozen Stores E-commerce E-commerce Picking Picking dry Picking fresh picking frozen The property is
Slide 79: Initiatives in the south of Sweden
Axfood Capital Markets Day 2021 The future of logistics Initiatives in the south of Sweden High-bay warehouse in Backa E-commerce warehouse Fruit and vegetables in Gothenburg in Backa in Gothenburg warehouse in Landskrona Expansion with two new automated aisles to New, highly automated e-commerce Ne
Slide 80: New transport management system
Axfood Capital Markets Day 2021 The future of logistics New transport management system Axfood is in cooperation with Descartes gradually implementing a new Transport Management System (TMS). Route simulation Consolidation of multiple and planning transport systems to one Sophisticated and data Attr
Slide 81: A green delivery fleet
Axfood Capital Markets Day 2021 The future of logistics A green delivery fleet • Dagab’s vehicle fleet is being gradually changed over to being entirely fossil-free • Diversification strategy– by 2025, no vehicle type should comprise more than half of the fleet • Dagab aims to reduce carbon emission
Slide 82: Bergendahls integration
Axfood Capital Markets Day 2021 The future of logistics Bergendahls integration 2023 Focus on integrating stores with processes and IT infrastructure Focus on integrating Bergendahls Food with Dagab 2022 1 October 2021 Transaction closed The graphic to the right is for illustrative purposes only. 20
Slide 83: A strong financial position driving growth
Axfood Capital Markets Day 2021 A strong financial position driving growth A strong financial position driving growth Anders Lexmon, CFO Axfood Capital Markets Day 2021
Slide 84: A strong financial position driving growth
Axfood Capital Markets Day 2021 A strong financial position driving growth A strong financial position driving growth Delivering in line Continued resilience Strong operating with the Group’s enables flexibility and cash flow and solid financial targets space to invest dividend yield Growing more th
Slide 85: Delivering in a dynamic environment
Axfood Capital Markets Day 2021 A strong financial position driving growth Delivering in a dynamic environment 2015-2020 2015-2020 Net sales, compounded Earnings per share, compounded annual growth (CAGR) annual growth (CAGR) 7.1% 5.4% 3.0% 2.4% Axfood Food retail Axfood Food retail peer group* peer
Slide 86: Improved gross margin
Axfood Capital Markets Day 2021 A strong financial position driving growth Improved gross margin Reported Group gross margin* Key drivers to gross margin improvement 2021* 16.1% Increased % of sales from private label 30.9% in 2021* compared to 27.4% in 2016 2020 15.9% Data-driven work approach 2019
Slide 87: Capital efficiency
Axfood Capital Markets Day 2021 A strong financial position driving growth Capital efficiency Improved net working capital (NWC) Return on capital employed (ROCE) NWC as % of sales NWC, SEK m ROCE Capital employed, SEK m 12,360 42.1% 42.5% -2.0% 9,825 10,149 -2.3% -2.6% -3.0% 30.6% -979 -919 -3.4% -
Slide 88: Capital allocation
Axfood Capital Markets Day 2021 A strong financial position driving growth Capital allocation Depreciation and Investments amortization (D&A) Investments ex. leasehold D&A Investments ex. acquisitions, leasehold and automation % of Group sales D&A ex. IFRS 16 Investments ex. acquisitions, leasehold
Slide 89: A solid dividend yield
Axfood Capital Markets Day 2021 A strong financial position driving growth A solid dividend yield DIVIDEND POLICY • The dividend policy sets the goal that the shareholder dividend shall be at least 50 percent of profit after tax. • The dividend amount is to be paid on two occasions. Ordinary dividen
Slide 90: Investing for the future
Axfood Capital Markets Day 2021 A strong financial position driving growth Investing for the future New stores and IT and digital Logistics Bergendahls refurbishments platforms operations 90
Slide 91: Cost savings in supply chain
Axfood Capital Markets Day 2021 A strong financial position driving growth Cost savings in supply chain Axfood is currently investing in a best-in-class logistics platform that will increase capacity, flexibility and lead to higher efficiency. Supply chain investments in automation approx. EUR 305 m
Slide 92: Increased competitiveness with lower cost rate
Axfood Capital Markets Day 2021 A strong financial position driving growth Increased competitiveness with lower cost rate With the supply chain investments, including automation investments, Axfood expects that the cost level for the logistics operations, including the new lease and higher depreciat
Slide 93: Bålsta accounting
Axfood Capital Markets Day 2021 A strong financial position driving growth Bålsta accounting EUR 240 m 15 years Total investment in automation Average depreciation period for the automation between 2019 and 2023 investment (e.g. racks, mezzanines, cranes), depreciation from first half of 2023 when f
Slide 94: Financials Bergendahls Food
Axfood Capital Markets Day 2021 A strong financial position driving growth Financials Bergendahls Food The acquisition of Bergendahls Food is to be included in the Dagab segment. Bergendahl Food AB, R12M to 31 Aug 2021* SEK m Net sales 10,521 Operating profit 92 Operating margin, % 0.9 * In accordan
Slide 95: Financial impact from Bergendahls transaction
Axfood Capital Markets Day 2021 A strong financial position driving growth Financial impact from Bergendahls transaction OPERATING MARGIN INTEGRATION COSTS • Consolidation of Bergendahls Food will have a dilutive • SEK 20 m in the fourth quarter 2021 effect of an estimated 0.5 pp. on the Axfood Grou
Slide 96: Preliminary PPA Bergendahls Food
Axfood Capital Markets Day 2021 A strong financial position driving growth Preliminary PPA Bergendahls Food Purchase price allocation (PPA) SEK m Yearly amortisation Goodwill 1,017 − Customer contracts and relationships 592 -42 96
Slide 97: Financing implications going forward
Axfood Capital Markets Day 2021 A strong financial position driving growth Financing implications going forward RIGHTS ISSUE • Rights issue of SEK 1,500 m planned for 2022 to ensure a Financial position strong balance sheet with a high level of financial flexibility • Ensures ability to meet financi
Slide 98: Outlook 2022
Axfood Capital Markets Day 2021 A strong financial position driving growth Outlook 2022 ITEMS AFFECTING COMPARABILITY IN OPERATING PROFIT • Costs related to the transition to Bålsta of SEK 220 m • Integration costs of SEK 120 m related to Bergendahls PLANNED CAPITAL EXPENDITURES OF SEK 2,600-2,700 m
Slide 99: Group financial targets framework
Axfood Capital Markets Day 2021 Building a platform for continued growth Group financial targets framework GROWTH PROFITABILITY FINANCIAL Revised target POSITION Grow more than Long-term Equity ratio the market* operating margin of at least 20% of at least 4.5% at year-end (from 4.0%) * Refers to st
Slide 100: Group sustainability targets framework
Axfood Capital Markets Day 2021 Building a platform for continued growth Group sustainability targets framework CARBON FOOTPRINT ELECTRICITY SUSTAINABILITY- CONSUMPTION LABELLED PRODUCTS Net zero emissions from Reduction target 30% share of store own operations of 10% per sq. m. sales by 2025 by 203
Slide 101: Capital Markets Day 2021
Building a platform for continued growth Capital Markets Day 2021