1

Axfood

January-March, 2012

2

Axfood Q1 2012

• Solid sales growth: SEK 8,718 m (8,257) +5.6%– Increased number of customers

• Good operating profit: SEK 248 m (241) +2.9%

• Operating margin: 2.8% (2.9)

• Intense activity in all areas

8,718+5.6%

Net sales

3

Willys – Strong earnings and stable sales growth

• Strong earnings: SEK 171 m (157) +8.9%– Operating margin: 3.6% (3.5)

• Positive sales growth: SEK 4,701 m (4,545), +3.4%

• Continued high pace in store modernisations

• Like-for-like sales affected by: – Weak growth for stores that are still not

modernised

171+8.9%

Operating profit

4

Hemköp – Positive development

• Good sales growth: SEK 1,239 m(1,205), +2.8%

– Like-for-like sales: +3.1%

– Good development in franchise stores

• Increased profit: SEK 24 m (13), +84.6%

– Operating margin: 1.9% (1.1)

• Target 2012:

– 3% operating margin

• New store in Stockholm opened in April+3.1%

Like-for-like sales

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PrisXtra – Continued positive result

• Positive result: SEK 4 m (7)

• Decrease in sales due to major road constructions– Net sales: SEK 132 m (144), -8.3%

– Future strategic locations

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Axfood Närlivs – Increased market share

• Good sales growth in all areas – Net sales: SEK 1,441 m (1,184) + 21.7%– New businesses– Favourable development in Axfood Snabbgross

• Started to deliver to Statoil in January

+21.7%Net sales

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Dagab – Efficient logistics

• Efficiency and strong delivery reliability

• Operating profit: SEK 33 m (41)

• Result affected by:– Higher fuel prices– Increased costs due to implementation of the

new business system

97.5%Delivery reliability

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Increased private label share

• Highest private label share so far, 24.7%– Successful conversion to Group-wide label, Garant

• Target 2012:

– 25% private label share

0

5

10

15

20

25

-01 -03 -05 -07 -09 -11

%

Private label share

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Market outlook 2012

• Uncertain market development

• Food price inflation at low levels

• Continued tough competition

• Price conscious customers

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New union agreement

• New one year agreement from 1 April– Increased cost of 2.6% during the agreement period

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Strategy for profitable growth 2012

• Stimulate sales growth– Well operated stores

• Increased private label share

• Efficiency and cost control

• Ambitious pace of investment– SEK 900 – 1,000 m (993)– Continued high pace in store

establishments and renewals– Implementation of the new business

system continues

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Axfood’s goal for 2012

Achieve an operating profit in line with 2011

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Financial Overview

January-March, 2012

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Net sales, MSEK Operating margin, %

10229239Number of stores, Group-owned

-0.12.9%2.8%Operating margin, %

2.9%241248Operating profit

0.6-0.4%0.2%Change in like-for-like sales, %

5.6%8,2578,718Net sales

ChangeQ12011

Q1 2012SEK m

Key ratios

Axfood Q1 2012

8,2578,7188,9148,7358,889

Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -12

2.93.6

4.23.6

2.8

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Net sales, MSEK Operating margin, %

8162170Number of stores

0.13.5%3.6%Operating margin, %

8.9%157171Operating profit

2.4-2.7%-0.3%Change in like-for-like sales, %

3.4%4,5454,701Net sales

Change Q12011

Q1 2012SEK m

Key ratios

Willys Q1 2012

4,545 4,7014,8484,7064,805

Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -12

3.5

4.3 4.54.1

3.6

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Net sales, MSEK Operating margin, %

237

62 82

64 119

Number of stores Group-ownedFranchise

0.81.1%1.9%Operating margin, %

84.6%1324Operating profit

2.50,6%3,1%Change in like-for-like sales, %

2.8%1,2051,239Net sales

Change Q12011

Q1 2012SEK m

Key ratios

Hemköp Q1 2012

1,205 1,2391,2551,1431,184

Q1 -11 Q2 -1 Q3 -11 Q4 -11 Q1 -12

1.1

1.9

3.0

1.9 1.9

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Net sales, MSEK Operating margin, %

-55Number of stores

1.94.9%3.0%Operating margin, %

-57.1%74Operating profit

4.4-12.7%-8.3%Change in like-for-like sales, %

-8.3%144132Net sales

Change Q12011

Q1 2012SEK m

Key ratios

PrisXtra Q1 2012

144132

140

123

142

Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -12

4.9

2.8

-0.8

3.63.0

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Net sales, MSEK Operating margin, %

-97.997.9Delivery reliability, %

11920Number of stores, Axfood Snabbgross

0.10.5%0.6%Operating margin, %

33.3%68Operating profit

23.7%1,0721,326Distributed sales

21.7%1,1841,441Net sales

Change Q12011

Q1 2012SEK m

Key ratios

Axfood Närlivs Q1 2012

1,184

1,4411,3821,4831,467

Q1 -11 Q2 -1 Q3 -11 Q4 -11 Q1 -12

0.5

2.5

3.0

1.7

0.6

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Net sales, MSEK Operating margin, %

0.597.097.5Delivery reliability, %

-0.20.7%0.5%Operating margin, %

-19.5%4133Operating profit

3.9%4,0514,211Distributed sales

3.7%5,8076,022Net sales

Change Q12011

Q1 2012SEK m

Key ratios

Dagab Q1 2012

5,807 6,0226,2736,0166,199

Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -12

0.7 0.7

0.9 0.9

0.5

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Other Q1 2012

• Sales: SEK 1,079 m (1,020)

• Operating profit: SEK 8 m (17)– Result affected by higher depreciation

for the new business system

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Key ratios January-March 2012

• Balance sheet, total: SEK 8,603 m (7,709)

• Cash flow operating activity: SEK 416 m (293)

• Capex: SEK 323 m (220)– 50% of the wholesale company Hall Miba was

acquired– Investment plan 2012: SEK 900 – 1,000 m

(993)

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Financial targets & dividend policy

• Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011

• 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%

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Summary

• Stable result• Good sales development

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Axfood

Q&A