Slide 1: Axfood January-December 2013
Axfood January-December, 2013 Anders Strålman CEO 1
Slide 2: Axfood – good sales growth and strong result
Axfood – good sales growth and strong result • Good sales growth: SEK 37,522 m Operating profit (36,306) +3.3% – Focus on strong customer offerings and attractive stores • Record earnings: SEK 1,302 m (1,255*) +3.7% – Operating margin: 3.5% (3.5) – Good efficiency and cost control • Continued focus
Slide 3: Willys – successful year
Willys – successful year • Good sales growth: SEK 20,394 m (19,407) +5.1% – Like-for-like sales: +2.2% – Successful digital customer programme had a positive impact on sales – More than 1.3 million members in the programme Net sales • Operating profit: SEK 808 m (796), +1.5% – Operating margin: 4.0%
Slide 4: Hemköp – stable development
Hemköp – stable development • Net sales: SEK 5,578 m (5,584), -0.1% – Like-for-like sales: +0.9% • Operating profit: SEK 151 m (149), +1.3 – Operating margin: 2.7% (2.7) • Upgraded customer programme • New flagship store opened • 10 modernized stores Operating margin 4
Slide 5: Axfood Närlivs – record earnings
Axfood Närlivs – record earnings • Good sales development: SEK 6,489 m (6,336) +2.4% – Strong development in the cash-and-carry business – Favorable weather and strong customer offerings had a positive impact on sales • Strong profit growth: SEK 140 m (114), +22.8% – Operating margin: 2.2% (1.8) Ope
Slide 6: Dagab – intensive work with new business system
Dagab – intensive work with new business system • Operating profit: SEK 114 m (168) – Result affected by cost related to implementation of the new business system – System was installed in the warehouse in Stockholm and Gothenburg • Good delivery performance to the stores 6
Slide 7: New logistics organisation
New logistics organisation • One organization for all logistics within Axfood – Improve efficiency – Expected to take two years to complete 7
Slide 8: Market outlook
Market outlook • Increased optimism for Swedish economy • Stable growth in food retail industry • Expected food price inflation in line with 2013 8
Slide 9: Strategy for profitable growth
Strategy for profitable growth • Develop the various concepts – Modernize both Willys and Hemköp stores – Attractive customer offerings • Development of customer programmes and business system • High level of private label share 9
Slide 10: Axfood's goal 2014
Axfood’s goal 2014 Exceed the level of profit in 2013 10
Slide 11: Financial overview January-December 2013
Financial overview January-December, 2013 Karin Hygrell-Jonsson CFO 11
Slide 12: Axfood January-December 2013
Axfood January-December 2013 • Strong result and good sales growth Net sales, SEK m Operating margin, % Key ratios SEK m 2013 2012 Change Net sales 37,522 36,306 3.3% 9 557 9 465 9 550 9 252 8 950 Change in like-for-like sales, 1.9% 0.2% 1.7 % Operating profit 1,302 1,255* 3.7% 4.0 3.4 3.6 2.8 2.8 O
Slide 13: Willys January-December 2013
Willys January-December 2013 • Good sales growth and stable earnings – 12 new and 10 modernized stores Net sales, SEK m Operating margin, % Key ratios 5 174 5 209 SEK m 2013 2012 Change 4 927 4 919 5 092 Net sales 20,394 19,407 5.1% Change in like-for-like sales, 2.2% 0.0% 2.2 4.3 % 3.9 4.1 4.0 3.5
Slide 14: Hemköp January-December 2013
Hemköp January-December 2013 • Stable sales and result – 1 new and 10 modernized stores Net sales, SEK m Operating margin, % Key ratios 1 474 1 439 1 407 1 392 1 341 SEK m 2013 2012 Change Net sales 5,578 5,584 -0.1% Change in like-for-like sales, 0.9% 0.9% 0,0 %, Group-owned 3.9 Operating profit 15
Slide 15: Axfood Närlivs January-December 2013
Axfood Närlivs January-December 2013 • Best result ever – Very good performance in cash-and-carry business Net sales, SEK m Operating margin, % Key ratios SEK m 2013 2012 Change 1 728 1 738 Net sales 6,489 6,336 2.4% 1 570 1 596 1 427 Distributed sales 6,049 5,822 3.9% 3.0 2.4 2.1 Operating profit 1
Slide 16: Dagab January-December 2013
Dagab January-December 2013 • Increased costs due to implementation of the new business system Net sales, SEK m Operating margin, % Key ratios SEK m 2013 2012 Change 6 348 6 400 6 346 6 569 6 194 Net sales 25,509 24,634 3.6% Distributed sales 17,817 17,205 3.6% 0.7 0.6 Operating profit 114 168 -32.1
Slide 17: Other January-December 2013
Other January-December 2013 • Net sales: SEK 5,120 m (4,521), +13.2% – Good sales development for fruits & vegetables and meat • Operating profit: SEK 89 m (-27) – Previous year affected by impairment of SEK 55 m – Good efficiency and cost control in over head – Amortization of new business system w
Slide 18: Key ratios January-December 2013
Key ratios January-December 2013 • Balance sheet, total: SEK 8,929 m (8,820) • Cash flow operating activity: SEK 1,596 m (1,915) – Previous year was affected by lower tax payments • Capex: SEK 806 m (932) Capital expenditure – Investment plan 2014: SEK 700-800 m SEK m 1 000 800 600 400 200 0 -09 -10
Slide 19: Dividend
Dividend The Board of Directors proposes a dividend of: 80% of profit after tax
Slide 20: Financial targets & dividend policy
Financial targets & dividend policy • Axfood’s goal for 2014 is to exceed the level of profit in 2013 • 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 of 4% 20
Slide 21: Summary
Summary • Strong result and good sales growth – Increased market share 21
Slide 22: Q&A
Q&A 22