Axfood Ab · OMXSTO:AXFO
Axfood Ab — Investor Day (December 2019)
13 slides from Axfood Ab's investor day presentation, Dec 5, 2019
Slide 1: Financials
Financials Anders Lexmon, CFO, Axfood 66
Slide 2: Strong financial position
Strong financial position 67
Slide 3: Equity ratio above year-end target
Equity ratio above year-end target 5,082 Net debt (+)/receivable (-), SEK m Equity ratio 41.6% 38.3% 38.0% 36.7% 23.6% -327 -404 -581 -763 -926 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-19 excl IFRS 16 68
Slide 4: Property
Property Axfood
Slide 5: Long-term lease with NREP Logicenters
Long-term lease with NREP Logicenters • As previously reported a long-term lease agreement has been signed with NREP Logicenters. • The contract is for 25 years and has an open book structure. The rent is directly linked to the cost attributable to the construction work. Hence the base rent will not
Slide 6: Investment automation solution
Investment automation solution 71
Slide 7: Contracted investment regarding automation totalling EUR 240m
Contracted investment regarding automation totalling EUR 240m Total CAPEX estimated to be allocated over a period as shown below: EURm 120 100 45% 80 60 25% 40 20% 20 10% 0 2019 2020 2021 2022 2023 72
Slide 8: Currency hedging
Currency hedging EURm Actual hedges 120 100 During each of the fourth quarters starting 80 in 2020, Axfood will hedge an additional 25 60 percentage points of 50% each year's investment 40 100% 75% commitment until full hedging is achieved. 20 0 25% 2019 2020 2021 2022 2023 73
Slide 9: Currency hedging
Currency hedging EURm Hedges end of 2020 120 100 During each of the fourth quarters starting 80 in 2020, Axfood will 75% hedge an additional 25 60 percentage points of 100% each year's investment 40 commitment until full hedging is achieved. 20 50% 0 2019 2020 2021 2022 2023 74
Slide 10: Accounting
Accounting • Depreciation of the automation will be based on the estimated useful life of each type of component (e.g. racks, mezzanines, cranes) separately • On average, the depreciation period is estimated to be 15 years, but further detailing is needed to verify the definite impact 75
Slide 11: Increased competitiveness through lower cost rate
Increased competitiveness through lower cost rate % Estimated cost rate development for warehouse operations With todays setup As previously communicated, Axfood expects that the cost level for the logistics operations, including the new lease and higher depreciation, will be even with the current c
Slide 12: Secured financing – increased liquidity reserve
Secured financing – increased liquidity reserve 77
Slide 13: Financing
Financing • Axfood has signed an agreement with Swedbank and SEB on a five-year revolving credit facility (RCF) of SEK 3.5 bn with two one-year extension options. • RCF available for general corporate purposes. • With the RCF in place, Axfood has secured the financing of the entire investment connec