1

Axfood

July – September, 2011

2

Axfood July – September 2011

• Stable sales growth: SEK 8,735 m (8,582), + 1.8%

• Good earnings: SEK 370 m (364), +1.6%

• Operating margin: 4.2% (4.2)

• Good efficiency and cost control

• Uncertainty in the market environment

3

Hemköp July – September 2011

• Strengthened result and positive like for like sales

• Conversion of Vi-stores to Hemköp franchise started– 17 stores are so far converted– Around 50 stores in total will be

converted

• Target 2011: 2% EBIT margin

4

Willys July – September 2011

• Stable development and good operating margin

• High pace of store modernization

• Like for like sales affected by– Weak growth for stores that are

still not modernized– New competition

5

PrisXtra July – September 2011

• Result in line with plan

• Unsatisfying sales development– Two stores are affected by major

road work– Strategic locations in the future

• Target 2011: Positive operating profit

6

Axfood Närlivs July – September 2011

• Good sales growth in all areas– New agreements– Good development in e-commerce

• New agreement with SvenskaStatoil– Supply of newsstand and food

retail products from 1 January 2012

7

Dagab July – September 2011

• Stable performance– Cost control and efficiency– Good service level, 97.0%

• Extensive environmental programme continued

8

Market trends 2011

• Uncertain market development

• Competition remains high

• Price conscious customers

• Increased interest for private label

9

Strategy for profitable growth 2011

• Stimulate sales growth

• Cost control and efficiency

• High level of establishments and modernization of stores

• Increase private label share

10

Axfood’s goal 2011

To achieve an operating profit at least at the same level as in 2010

11

Financial Overview

July – September, 2011

12

Axfood July – September 2011

• Favourable earnings

• Good cost control

Axfood group, SEK m 2011 2010 Change

Net sales 8,735 8,582 + 1.8%

Operating profit 370 364 + 1.6%

Operating margin 4.2% 4.2% -

13

Willys July – September 2011

Operating margin

4.5%

Sales

-10 -11

4,6604,706

Operating profit

-10 -11

214 212

• Stable earnings

• Like-for-like sales: -1.3%

14

Hemköp July – September 2011

Operating margin

+4.1%Operating margin

3.0%

Operating profit

-10 -11

11

34

Sales

-10 -11

1,164 1,143

• Improved profitability

• Like-for-like sales: +0.6%

• Target 2011: 2% EBIT margin

15

PrisXtra July – September 2011

• Result according to plan

• Unsatisfying sales development

-

-

- 14.0%

Change

0.7%- 0.8%Operating margin

1-1 Operating profit

143123Net sales

20102011PrisXtra, SEK m

1616

Axfood Närlivs July – September 2011

• Good sales growth in all areas– New agreements– Positive development in e-commerce

-

+ 2.3%

+ 9.1%

Change

2.7%2.6%Operating margin

4344 Operating profit

1,5711,714Net sales

20102011Axfood Närlivs, SEK m

17

Dagab July – September 2011

• Stable development– Good cost control and efficiency

-

- 3.4%

+ 0.8%

Change

0.9%0.9%Operating margin

5856 Operating profit

6,3796,427 Net sales

20102011Dagab, SEK m

18

Other July – September 2011

• Sales: SEK 1,038 m (993)

• Operating profit: SEK 25 m (37)– Amortization of new business

system SEK 10 m (4)

19

Key ratios January – September 2011

• Balance sheet, total: SEK 7,911 m (7,367)

• Cash flow operating activity: SEK 1,004 m (1,037)

• Capex: SEK 696 m (592)

• Investment plan 2011: SEK 900 – 1 000 m (862)– Same level is expected for 2012

20

Financial targets & dividend policy

• Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010

• Equity ratio of at least 25%

• Shareholder dividend of at least 50% of profit for the year after tax

• Long term target for operating margin: 4%

21

Summary

• Good result– Cost control and efficiency

• Uncertainty in the market environment

22