Axfood AB · OMXSTO:AXFO
Axfood AB — FY2016 Earnings Presentation
21 slides from Axfood AB's earnings presentation, February 2017
Slide 1: 2016: Axfood's best year – again
2016: Axfood’s best year – again Anders Strålman President and CEO
Slide 2: Another excellent year outperforming the market
Another excellent year outperforming the market • Net sales growth, 5.1% • All companies contributed to sales growth – Willys 3.8% like-for-like 1.4% – Hemköp 4.9% like-for-like 4.0% – Axfood Närlivs 5.5% – Dagab 6.4% • Increased operating margin: 4.4% (4.3) • Market growth 2016: 2.2% (Source: HUI/S
Slide 3: Willys – gained markets shares
Willys – gained markets shares • Good net sales growth Net sales – Like-for-like sales 1.4% – More than 2 million Willys Plus customers +3.8% • Maintained profitability – Operating margin of 4.0% (4.0) • Expansion plans 2017 – 2 new Willys – 1 new Willys Hemma – E-commerce in another 20 cities 3
Slide 4: Hemköp – exceeded 4 percent profitability
Hemköp – exceeded 4 percent profitability • Strong sales growth, both overall and like-for-like Net sales – Like-for-like sales 4.0% (franchise 3.5%) – 3 Group-owned stores (91/9) turned into franchise and 4 Group-owned stores into 91/9-stores +4.9% – 3 Tempo stores converted to Hemköp franchise – M
Slide 5: Axfood Närlivs – increased its market position
Axfood Närlivs – increased its market position Net sales • Good sales growth, both in the cash-and-carry business and to convenience stores +5.5% • Further investments in Axfood Snabbgross – 2 new stores: Helsingborg and Gothenburg • Favourable profitability – Operating margin of 7.0% (7.3) 5
Slide 6: Dagab – continued strong performance
Dagab – continued strong performance Net sales • Good sales to Group’s store chains and in the wholesales operations +6.4% • Strong profitability through higher volumes to the store chains, positive development of private label goods and increased efficiency – Operating margin of 1.6 % (1.5) • High
Slide 7: Acquisition of the pure online food store, mat.se
Acquisition of the pure online food store, mat.se • Matse Holding consists of: – mat.se – an online full assortment grocery store – the recipe sites kokaihop.se and spisa.nu – home deliveries under own management • Strong position in the online grocery market • ‘Dark’ stores in Stockholm, Gothenburg
Slide 8: Entering the cross-border shopping segment
Entering the cross-border shopping segment • Acquisition of the second-largest food retailer along Sweden’s border with Norway, Eurocash Food AB • Joint acquisition with Norgesgruppen • Eurocash consists of: – 7 Eurocash stores and Strömstad Mat • Approx. SEK 1.2 bn in sales and good profitability •
Slide 9: Market outlook 2017
Market outlook 2017 • Increasing competition – More stores – Increased e-commerce • Low food price inflation – 1-2% expected for 2017 • Growing market 9
Slide 10: Strategy for profitable growth
Strategy for profitable growth • Proceeding the high expansion rate – Broader roll-out Willys’ and Hemköp’s e-commerce Strengthen market – Integrate mat.se position – Enter the cross-border shopping segment as – New stores and concept development • Keep profitability level of 4% to get growth • Cont
Slide 11: Axfood's forecast
Axfood’s forecast Axfood is focusing on growth and new investments, and the forecast is an operating profit in 2017 to be level with the outcome for 2016 11
Slide 12: Financial overview Full-year 2016
Financial overview Full-year 2016 Karin Hygrell-Jonsson CFO
Slide 13: Axfood 2016
Axfood 2016 Key ratios ■ Net sales, SEK m SEK m Q4 2016 Q4 2015 Change 2016 2015 Change ▬ Operating margin, % Net sales 11,116 10,791 3.0% 43,355 41,247 5.1% 10,991 10,853 11,116 1.00 10,791 10,395 0.90 0.80 Change in like-for-like 1.3% 5.5% -4.2 2.0% 4.5% -2.5 0.70 sales 5.5 0.60 4.2 4.5 0.50 Opera
Slide 14: Willys 2016
Willys 2016 Key ratios ■ Net sales, SEK m SEKm Q4 2016 Q4 2015 Change 2016 2015 Change ▬ Operating margin, % 5,978 Net sales 5,978 5,808 2.9% 23,164 22,320 3.8% 5,808 5,643 5,823 5,720 Change in like-for-like 1.1% 5.4% -4.3 1.4% 4.4% -3.0 sales 4.8 3.8 4.2 Operating profit 205 222 -7.7% 922 896 2.9%
Slide 15: Hemköp 2016
Hemköp 2016 Key ratios ■ Net sales, SEK m SEKm Q4 2016 Q4 2015 Change 2016 2015 Change ▬ Operating margin, % 1,586 1,545 1,563 1,599 Net sales 1,599 1,586 0.8% 6,171 5,883 4.9% 1,464 65,0 55,0 Change in like-for-like 2.3% 6.1% -3.8 4.0% 5.0% -1.0 sales 4.6 4.5 45,0 3.6 3.8 3.9 Operating profit 62 57
Slide 16: Axfood Närlivs 2016
Axfood Närlivs 2016 Key ratios ■ Net sales, SEK m ▬ Operating margin, % SEKm Q4 2016 Q4 2015 Change 2016 2015 Change 150,0 760 789 Net sales 701 688 1.9% 2,884 2,734 5.5% 130,0 688 701 634 110,0 9.9 90,0 Operating profit 45 48 -6.3% 202 200 1.0% 7.5 7.0 70,0 6.4 50,0 3.5 30,0 Operating margin 6.4% 7
Slide 17: Dagab 2016
Dagab 2016 Key ratios ■ Net sales, SEK m SEKm Q4 2016 Q4 2015 Change 2016 2015 Change ▬ Operating margin, % Net sales 10,914 10,389 5.1% 42,319 39,756 6.4% 12 10,914 10,389 10,734 10,559 11 10,112 10 Distributed sales 7,280 6,930 5.1% 27,639 25,995 6.3% 9 1.9 8 1.7 1.6 1.5 7 6 1.3 Operating profit 1
Slide 18: Other key ratios 2016
Other key ratios 2016 Capital expenditure, SEK m • Balance sheet, total: SEK 10,539 m (10,537) • Cash flow operating activity: SEK 2,241 m (2,495) 932 806 • Capex: SEK 580 m (764) 764 – Investment plan 2017, excluding acquisitions: SEK 800−900 m 643 580 2012 2013 2014 2015 2016 18
Slide 19: Financial targets and Dividend policy
Financial targets • Axfood is focusing on growth and new investments, and the forecast is for an operating profit in 2017 that is level with the outcome for 2016. • Long-term target of an operating margin of 4% • Equity ratio of at least 25% during all quarters Dividend policy • Shareholder dividend
Slide 20: Summary financial development
Summary financial development All companies contributed with: • Good net sales growth • Strong and stable profitability – Increased volume – Cost control – Efficiency • High share of private label • Gaining market share 20
Slide 21: Questions & answers
Questions & answers 21