Axfood Ab · OMXSTO:AXFO

Axfood Ab — Q2 2015 Earnings Presentation

20 slides from Axfood Ab's earnings presentation, June 2015

  1. Slide 1: Axfood April – June, 2015

    Axfood April – June, 2015 Anders Strålman CEO 1

  2. Slide 2: Axfood – continued positive growth

    Axfood – continued positive growth  Net sales: SEK 10,478 m (9,804), +6.9%  Operating profit: SEK 431 m (376), +14.6%  Strong results in all business units  Attractive customer offerings  Improved efficiency Net sales 2

  3. Slide 3: Willys – good sales growth

    Willys – good sales growth  Net sales: SEK 5,691 m (5,374), +5.9% ‒ Like-for-like sales: +3.7%  Operating profit: SEK 227 m (221) ‒ Operating margin: 4.0% (4.1)  Improved customer offerings with Willys+  Increased number of customers Net sales 3

  4. Slide 4: Hemköp – continued good sales growth

    Hemköp – continued good sales growth  Net sales: SEK 1,470 m (1,364), +7.8% ‒ Like-for-like sales: +4.9%  Operating profit: SEK 56 m (47) ‒ Operating margin: 3.8% (3.4)  Improved customer programme  Modernized stores Net sales 4

  5. Slide 5: Närlivs – stable growth

    Axfood Närlivs – stable growth  Net sales: SEK 717 m (668), +7.3 %  Operating profit: SEK 59 m (42) ‒ Operating margin: 8.2% (6.3)  Last year’s result was affected by higher costs due to the implementation of the new business system  Continued strong growth in the cash and carry business  Renew

  6. Slide 6: Sverige – improved efficiency

    Axfood Sverige – improved efficiency  Net sales: SEK 10,058 m (8,948), +12.4%  Operating profit: SEK 132 m (98) ‒ Operating margin: 1.3% (1.1)  High level of private label: 26.5% (24.8)  High delivery reliability ‒ Improved efficiency  Last year’s result was affected by higher costs due to the

  7. Slide 7: Market outlook

    Market outlook  Raised social security expenses for young employees  Stable growth in food retail market ‒ More optimistic customers  Low food price inflation ‒ 1-2% expected for 2015 7

  8. Slide 8: Strategy for profitable growth

    Strategy for profitable growth  Develop the various concepts ‒ Modernize both Willys and Hemköp stores ‒ Attractive customer offerings  Development of modern supply chain organization  High level of private label share 8

  9. Slide 9: Axfood's goal for 2015

    Axfood’s goal for 2015 Exceed the level of profit in 2014 9

  10. Slide 10: Financial overview

    Financial overview April – June, 2015 Karin Hygrell-Jonsson CFO 10

  11. Slide 11: Axfood April – June, 2015

    Axfood April – June, 2015  Good sales performance and stable earnings Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2015 2014 Change 10,478 9,804 9,756 9,978 9,566 Net sales 10,478 9,804 6.9% Change in like-for-like sales, % 3.9% 1.5% 2.4 4.6 4.1 Operating profit 431 376 14.6% 3.8 3.7

  12. Slide 12: Willys

    Willys April – June, 2015  Good sales performance and stable earnings Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2015 2014 Change 5,374 5,243 5,416 5,261 5,691 Net sales 5,691 5,374 5.9% Change in like-for-like sales, % 3.7% 1.2% 2.5 4.6 4.4 4.1 4.0 3.3 Operating profit 227 221 2.7

  13. Slide 13: Hemköp

    Hemköp April – June, 2015  Good sales growth  Improved profitability Net sales, SEK m Operating margin, % Key ratios Q2 Q2 1,454 1,401 1,470 SEK m 2015 2014 Change 1,364 1,337 Net sales 1,470 1,364 7.8% Change in like-for-like sales, % 4.9% 2.6% 2.3 4.5 3.8 3.8 Operating profit 56 47 19.1% 3.4 3.6

  14. Slide 14: Närlivs

    Axfood Närlivs April – June, 2015  Good sales growth in the cash and carry business  Improved profitability  Last year’s result was affected by higher costs due to the implementation of the new business system Net sales, SEK m Operating margin, % Key ratios 717 Q2 Q2 668 677 SEK m 2015 2014 Chang

  15. Slide 15: Sverige

    Axfood Sverige April – June, 2015  Improved results due to higher efficiency and good cost control  Last year’s result was affected by higher costs due to the implementation of the new business system Net sales, SEK m Operating margin, % Key ratios Q2 Q2 10,058 SEK m 2015 2014 Change 8,948 9,097 9

  16. Slide 16: Joint-Group

    Joint-Group April – June, 2015  Joint-Group functions: ‒ Executive Committee ‒ Finance/Accounting ‒ Corporate Communications ‒ Business Development ‒ HR ‒ IT  Operating profit: SEK -43 m (-32) 16

  17. Slide 17: Key ratios January – June, 2015

    Key ratios January – June, 2015  Balance sheet, total: SEK 9,714 m (8,880)  Cash flow operating activity: SEK 1,145 m (719)  Capex: SEK 385 m (303) ‒ Investment plan 2015: SEK 700 - 800 m Capital expenditure, SEK m 993 932 862 806 643 2010 2011 2012 2013 2014 17

  18. Slide 18: Financial targets & dividend policy

    Financial targets & dividend policy  Axfood’s goal for 2015 is to exceed the level of profit in 2014  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% 18

  19. Slide 19: Summary financial development

    Summary financial development  Good sales development and strong result 19

  20. Slide 20: Q&A

    Q&A 20

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