Axfood Ab · OMXSTO:AXFO

Axfood Ab — FY2015 Earnings Presentation

22 slides from Axfood Ab's earnings presentation, 2016

  1. Slide 1: Full-year 2015, Axfood

    Full-year 2015, Axfood Anders Strålman, CEO Karin Hygrell-Jonsson, CFO 1

  2. Slide 2: Excellent sales growth

    Excellent sales growth  Sales growth above expectations  All companies contributed to excellent sales growth  Willys 6.4% like-for-like 4.4%  Hemköp 6.8% like-for-like 5.0%  Axfood Närlivs 8.4%  Dagab 13.7%  Market growth +4.0%  Of which food price inflation of 2.4% Net sales 2

  3. Slide 3: Achieved profitability target

    Achieved profitability target  Strong operating profit  SEK 1,760 m (1,447), +21.6%  Improved profitability in all companies  Willys 3.0%  Hemköp 12.2%  Axfood Närlivs 44.9%  Dagab 48.9% Operating margin 3

  4. Slide 4: Willys – very strong sales growth

    Willys – very strong sales growth  5 new stores and 1.8 million Willys+ customers  Increased market share despite tough competition  Stable profitability  Operating margin of 4.0% (4.1) Net sales 4

  5. Slide 5: Hemköp – record sales and profitability

    Hemköp – record sales and profitability  Very strong sales growth  3 new Hemköp stores  0.8 million customers in loyality programme  Improved profitability  Operating margin of 3.8% (3.6) Net sales 5

  6. Slide 6: Axfood Närlivs – very strong year

    Axfood Närlivs – very strong year  Strong sales development  Driven by growth in Axfood Snabbgross  New Axfood Snabbgross in Stockholm during Q4  Extraordinary high operating profit  Operating margin of 7.3% (5.5)  Dissolution of a provision Net sales 6

  7. Slide 7: Dagab – outstanding high volume, efficiency and tight cost control

    Dagab – outstanding high volume, efficiency and tight cost control  Very strong sales growth  Strenghtened operating result  Operating margin of 1.5% (1.2)  Improved service level  Private label share: 26.8% (25.9) Net sales 7

  8. Slide 8: Market outlook 2016

    Market outlook 2016  Expected continuous GDP growth in Sweden  Strong private consumption  Labour market conditions  Raised social security expenses for young employees  Ongoing wage negotiations  Low food price inflation  Approx. 1-2% expected for 2016 8

  9. Slide 9: Strategy for profitable growth

    Strategy for profitable growth Strengthen market position as #2  Continuous high expansion rate  10 new stores  Implementation of e-commerce to consumer in H1  Keep profitability level of 4%  Further efficiency improvements  Secure continuous cost control  Development of global, organic and v

  10. Slide 10: Axfood’s forecast

    Axfood’s forecast Operating profit for 2016 to exceed the outcome for 2015 • Investment plan 2016: SEK 700-800 m 10

  11. Slide 11: Financial overview Full-year, 2015

    Financial overview Full-year, 2015 Karin Hygrell-Jonsson CFO 11

  12. Slide 12: Axfood 2015

    Axfood 2015  Strong sales growth and operating profit Net sales, SEK m Operating margin, % Key ratios Q4 Q4 SEK m 2015 2014 Change 2015 2014 Change 10,478 10,412 10,791 9,978 Net sales 10,791 9,978 8.1% 41,247 38,484 7.2% 9,566 Change in like-for-like 5.5% 2.4% 3.1 4.5% 0.7% 3.8 sales, % 4.4 Operat

  13. Slide 13: Willys 2015

    Willys 2015  Very strong sales and earnings Net sales, SEK m Operating margin, % Key ratios Q4 Q4 SEK m 2015 2014 Change 2015 2014 Change 5,691 5,560 5,808 Net sales 5,808 5,416 7.2% 22,320 20,974 6.4% 5,416 5,261 Change in like-for-like 5.4% 2.1% 3.3 4.4% 0.3% 4.1 sales, % 4.9 4.4 4.0 3.8 Operatin

  14. Slide 14: Hemköp 2015

    Hemköp 2015  Continued good sales growth and improved profitability Net sales, SEK m Operating margin, % Key ratios Q4 Q4 1,586 SEK m 2015 2014 Change 2015 2014 Change 1,454 1,401 1,470 1,426 Net sales 1,586 1,454 9.1% 5,883 5,510 6.8% Change in like-for-like 6.1% 3.7% 2.4 5.0% 2.3% 2.7 sales, % 4.

  15. Slide 15: Axfood Närlivs 2015

    Axfood Närlivs 2015  Good sales performance and improved profitability  Positive effect of dissolution in provisions Net sales, SEK m Operating margin, % Key ratios Q4 Q4 717 734 SEK m 2015 2014 Change 2015 2014 Change 688 632 595 Net sales 688 632 8.9% 2,734 2,522 8.4% 10.1 8.2 Operating profit 4

  16. Slide 16: Dagab 2015

    Dagab 2015  High volume, efficiency and good cost control Net sales, SEK m Operating margin, % Key ratios Q4 Q4 10,058 10,044 10,389 SEK m 2015 2014 Change 2015 2014 Change 9,097 9,265 1.8 1.6 Net sales 10,389 9,097 14.2% 39,756 34,951 13.7 1.4 1.3 1.3 Distributed sales 6,930 5,828 18.9% 25,995 22,

  17. Slide 17: Joint-Group 2015

    Joint-Group 2015  Joint-Group functions:  Executive Committee  Finance/Accounting  Corporate Communications  Business Development  HR  IT  Operating profit: SEK -157 m (-161) 17

  18. Slide 18: Key ratios 2015

    Key ratios 2015  Balance sheet, total: SEK 10,537 m (9,692)  Cash flow operating activity: SEK 2,495 m (2,029)  Capex: SEK 764 m (643)  Investment plan 2016: SEK 700−800 m Capital expenditure, SEK m 993 932 806 764 643 2011 2012 2013 2014 2015 18

  19. Slide 19: Financial targets & dividend policy

    Financial targets & dividend policy  Axfood expects 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%  Shareholder dividend of at least 50% of profit for the year after tax 19

  20. Slide 20: Dividend

    Dividend  The Board of Directors proposes an ordinary dividend of SEK 5.00 per share (4.25)  The dividend corresponds to 77 percent of the profit after tax  To make a one-time adjustment of the capital structure, the Board also proposes an extra dividend of SEK 4.00 per share 20

  21. Slide 21: Summary financial development

    Summary financial development  High leverage on  strong sales growth  cost control & efficiency  Gaining market shares 21

  22. Slide 22: Questions & answers

    » 4 e Os Questions & answers axfood = is

Axfood — FY2015 Earnings Presentation on 6ix