2010-02-02 Year-End 2009 presentation
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Transcript of 2010-02-02 Year-End 2009 presentation
1 January – 31 December 2009
Axfood AB
2
Axfood AB 1 January – 31 December 2009
• Consolidated sales : SEK 32,378 m (31,663), an increase of 2.3%
• Good operating profit: SEK 1,128 m (1,077)
• Operating margin: 3.5% (3.4)
• Positive operating margin in all operations
3
Objectives achieved 2009
3
Objective 2009• Achieve an operating profit
of at least SEK 1 billion
• Equity ratio of at least 25%
• Shareholder dividend of at least 50% of profit for theyear after tax
• Profitability for Hemköp
Outcome• Operating profit SEK 1,128 m
• Equity ratio target reached everyquarter
• For 2009 the board of Directors proposes a dividend of SEK 10, 66% of profit after tax
• Operating profit SEK 28 m
4
Hemköp 1 January – 31 December 2009
• Positive result despite restructuring costs of SEK 46 m
– Improved cost control– Increased gross profit– Closed or converted eight fully
owned stores
• 2010: Focus on improving sales and profitability
– Higher pace of marketing activities– New price strategy
5
Willys 1 January – 31 December 2009
• Continued good performance– Stable earnings and sales– Increased number of customers
• Leading position in soft discount– Attractive mix between price &
assortment
• Development of concept according to plan, so far 28 stores
• 2010: Sales growth and increase number of stores
6
PrisXtra 1 January – 31 December 2009
• Unsatisfying sales and profitability
• Decrease in sales for two stores due to major road work
• 2010: Focus on store performance and increased profitability
77
Axfood Närlivs 1 January – 31 December 2009
• Good profitability in all parts despite fierce competition
• Cash & Carry showed very strong performance
8
Dagab 1 January – 31 December 2009
• Improved efficiency and good cost control
• Excellent service level
• Implementation of Autoordercontinued as planned
• Deliver to Vi- stores since November
9
New IT platform
• New business system to better support all of Axfoods strategies
• Project will run over five years
• Total investment of SEK 500 - 600 m
10
Market trends 2010
• Continued strong price competition
• Increased price consciousness among customers
• Food inflation at low levels
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Unchanged strategy for profitable growth
• Stimulate sales
• Increase efficiency
• Continued good cost control
• Develop and improve the variousconcepts
• Refine price & product range
• Optimize store operations
• Continued private label developement
12
Axfood´s goal for 2010
Is to achieve an operating profit in level with 2009
1 January – 31 December 2009
Financial Performance
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Axfood AB 1 January – 31 December 2009
• Good profitability
• Strong cost control
• Stable sales
-
+ 4.7%
+2.3 %
Change
3.4%3.5%Operating margin
1,0771,128 Operating profit
31,66332,378Net sales
20082009Group , SEK m
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Hemköp 1 January – 31 December 2009
Sales Operating profit
-0.1%0.5%Operating margin
20082009
-09 -08
5,640 5,335
-09 -08
-8
28
16
Willys 1 January – 31 December 2009
+4.8%
Sales
4.4%4.2%Operating margin
20082009
Operating profit
-09 -08
16,77617,589
-09 -08
731 730
17
PrisXtra 1 January – 31 December 2009
• Focus on store performance and improving customer offerings
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-
-
Change
1.4%0.8%Operating margin
96 Operating profit
653725 Net sales
20082009SEK m
1818
Axfood Närlivs 1 January – 31 December 2009
-
+ 20.0%
-1.6%
Change
1.9%2.4%Operating margin
110132 Operating profit
5,6625,571 Net sales
20082009SEK m
• Good development in distributed sales
• Stable results
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Dagab 1 January – 31 December 2009
• Excellent service level
• Good development in distributedsales
-
+ 6.5%
+ 2.7%
Change
0.6%0.6%Operating margin
138147 Operating profit
23,42424,052 Net sales
20082009SEK m
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Other 1 January – 31 December 2009
• Sales: SEK 3,364 m (1,981)
• Operating profit: SEK 84 m (98)
• Increased internal sales are driven by fruit& vegetables and centrally packed meat
2121
Key ratios
• Balance sheet, total: SEK 7,173 m (7,350)
• Cash flow operating activity: SEK 1,558 m (1,152)
• Capex: SEK 633 m (1,158)
• Equity ratio: 36.7% (30.7)
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Strong financial posistion
Q1 2006 – Q4 2009
0
400
800
1 200
1 600
2 000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q40
0,25
0,5
0,75
1
1,25Debt, short term, MSEKDebt, long term, MSEKDebt equity ratio mutiple
2006 2007 2008 2009
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Financial targets & dividend policy
• Axfood´s goal for 2010 is to achieve an operating profit in level with 2009
• Equity ratio of at least 25%
• Shareholder dividend of at least50% of profit for the year after tax
• For 2009 the board of Directors proposes a dividend of SEK10 (8)
• Long term target for operating margin: 4%
24
Summary financial performance
• Stable sales and strong result
• Efficiency and good cost control
• Strong balance sheet & cash flow
Time for questions!