Slide 1: Q1 2016 – Continued growth with maintained profitability
Q1 2016 – Continued growth with maintained profitability Anders Strålman President and CEO
Slide 2: Continued growth and increased market share
Continued growth and increased market share • Net sales growth +8.7% • Increased operating margin 3.9% (3.4) – SEK 408 m (329), +24.0% • All companies contributed to: sales growth improved profitability – Willys 7.3% like-for-like 4.9% – Hemköp 10.3% like-for-like 6.2% – Axfood Närlivs 6.6% – Dagab
Slide 3: Willys – good sales growth and increased customer base
Willys – good sales growth and increased customer base • Increased number of customers Net sales – Willys+ 1.9 million • Three new stores +7.3% – Vinsta/Stockholm – Kungsbacka – Umeå • Increased profitability – Operating margin of 3.5% (3.3) 3
Slide 4: Hemköp – continued strong sales growth
Hemköp – continued strong sales growth • Increased number of customers and Net sales activity in customer programme • One 91/9-store converted to franchise +10.3% • Five new 91/9-agreement signed • Operating margin: 3.8% (3.6) 4
Slide 5: Axfood Närlivs – continued good growth
Axfood Närlivs – continued good growth Net sales • Strong performance • One new Axfood Snabbgross +6.6% – Umeå • Operating margin: 3.5% (3.2) 5
Slide 6: Dagab – further strengthened by the retail growth
Dagab – further strengthened by the retail growth Net sales • Continued strong profitability – Cost control +9.1% – Increased efficiency • Operating margin: 1.7 % (1.3) • High share of private label: 27.3% (27.1) 6
Slide 7: Market outlook 2016
Market outlook 2016 • Concluded wage negotiations – One year agreement – +2.2% • Second step of rising social security expenses for young employees ahead • Expecting continued stable growth • Low food price inflation – 1-2% expected for 2016 7
Slide 8: E-commerce for consumer
E-commerce for consumer • Limited to larger cities – Launch in Stockholm and Gothenburg in Q2 • Picking in present stores • Home delivery and click-and-collect 8
Slide 9: Strategy for profitable growth
Strategy for profitable growth • Continue high expansion rate Strengthen – New stores market – Attracting more customers: customer programmes, position e-commerce to consumer, further modernization at Hemköp as • Keep profitability level of 4% • Development of global, organic and vegetarian product
Slide 10: Axfood's forecast
Axfood’s forecast Operating profit for 2016 to exceed the outcome for 2015 10
Slide 11: Financial overview Q1 2016
Financial overview Q1 2016 Karin Hygrell-Jonsson CFO
Slide 12: Axfood Q1 2016
Axfood Q1 2016 Key ratios ■ Net sales, SEK m SEK m Q1 2016 Q1 2015 Change ▬ Operating margin, % Net sales 10,395 9,566 8.7% 1.00 10,478 10,412 10,791 10,395 0.90 9,566 Change in like-for-like 0.80 5.2 4.3 0.9 0.70 sales, % 5.3 0.60 4.2 0.50 Operating profit 408 329 24.0% 4.1 3.9 0.40 3.4 0.30 0.20 O
Slide 13: Willys Q1 2016
Willys Q1 2016 Key ratios ■ Net sales, SEK m SEK m Q1 2016 Q1 2015 Change ▬ Operating margin, % Net sales 5,643 5,261 7.3% 5,691 5,808 5,643 5,560 Change in like-for-like 5,261 4.9 4.3 0.6 sales, % 4.9 Operating profit 195 172 13.4% 4.0 3.8 3.3 3.5 Operating margin, % 3.5 3.3 0.2 Q1 -15 Q2 -15 Q3 -1
Slide 14: Hemköp Q1 2016
Hemköp Q1 2016 Key ratios ■ Net sales, SEK m SEK m Q1 2016 Q1 2015 Change ▬ Operating margin, % Net sales 1,545 1,401 10.3% 1,586 1,545 1,470 1,426 65,0 1,401 Change in like-for-like 6.2 4.2 2.0 55,0 sales, % 45,0 Operating profit 59 50 18.0% 4.1 3.8 3.6 3.8 3.6 35,0 Operating margin, % 3.8 3.6 0.2
Slide 15: Axfood Närlivs Q1 2016
Axfood Närlivs Q1 2016 Key ratios ■ Net sales, SEK m SEK m Q1 2016 Q1 2015 Change ▬ Operating margin, % 150,0 Net sales 634 595 6.6% 717 734 130,0 688 634 110,0 595 10.1 90,0 Operating profit 22 19 15.8% 8.2 7.0 70,0 50,0 Operating margin, % 3.5 3.2 0.3 3.5 30,0 3.2 10,0 Number of stores, -10,0 22 2
Slide 16: Dagab Q1 2016
Dagab Q1 2016 Key ratios ■ Net sales, SEK m SEK m Q1 2016 Q1 2015 Change ▬ Operating margin, % Net sales 10,112 9,265 9,1% 12 11 10,058 10,044 10,389 10,112 10 9,265 Distributed sales 6,532 5,979 9.2% 9 1.8 8 1.7 1.6 7 6 1.3 1.3 Operating profit 168 125 34.4% 5 4 3 Operating margin, % 1.7 1.3 0.4 2
Slide 17: Joint-Group and other key ratios Q1 2016
Joint-Group and other key ratios Q1 2016 Capital expenditure, SEK m • Joint-Group operating profit: SEK -36 (-37) 993 • Balance sheet, total: SEK 8,903 m (9,170) 932 – Dividend payment: SEK 1,889 m (899) 806 764 • Cash flow operating activity: SEK 404 m (518) 643 • Capex: SEK 136 m (164) – Investmen
Slide 18: Financial targets Dividend policy
Financial targets • Operating profit for 2016 to exceed the outcome for 2015 • Long-term target for an operating margin of 4% • Equity ratio of at least 25% during all quarters Dividend policy • Shareholder dividend of at least 50% of profit after tax 18
Slide 19: Summary financial development
Summary financial development All companies contributed with: • Good net sales growth • Increased profitability – Increased volume – Cost control – Efficiency • High share of private label • Gaining market share 19
Slide 20: Questions & answers
Questions & answers 20