Rimi Baltic

– Managing growth and profitability in a challenging environment

ICA Gruppen Capital Markets Day 11 December 2019

Edgar Sesemann, CEO Rimi Baltic

“EVERYDAY A LITTLE BETTER”

Well prepared for new competition

2

Improve market share position

‒ New all time high for Rimi market share

‒ Conversions of discount stores completed by Q3 2019

‒ Higher pace of establishments, 16-18 new stores in 2020

‒ E-Commerce launched in Q4 2019, roll-out H1 2020 in Estonia and Lithuania

Progress digital initiatives

‒ Continue successful roll-out of self-checkouts and self-scanning introduced

‒ Continue improvements in targeted 1 to 1 customer relations marketing

Extract further cost efficiencies

‒ Extension of central and Latvian distribution centre on track and move back starting Q3 to be completed by Q1 2021

‒ Semi automatization added to the distribution centre

CSI* continues to improve…

The 2019 analysis is based on 59 502 responses. Last year’s results have been weighted to reflect the 2019 data collection mix.

CSI = Customer Satisfaction Index 0-100, GAP = Difference in satisfaction between the Rimi store and local competition,

() Numbers within brackets shows development from 2018.

Rimi Baltic improves customer satisfaction (CSI) in all markets

RIMI BALTIC

CSI

74.5(+1.0)

GAP +3.4 (+0.2)

ESTONIA LATVIA LITHUANIA

CSI

72.9(+1.7)

CSI

72.6(+0.2)

CSI

78.7(+0.3)

GAP 2.1 (+1.4) GAP 4.8 (-0.3) GAP +3.1 (-1.1)

3

..and 2019 has shown continued strong EBIT improvement…

DRIVEN BY:

▪ New stores

▪ Store upgrades and format mix

▪ Purchase prices

▪ Promotional efficiency

▪ Private Label margin

▪ Store efficiency

4

41,944,4

55,4

61,8 63,767,8

3,3% 3,3%

3,9%

4,3% 4,3%4,5%

2014 2015 2016 2017 2018 2019 Q3 LTM

EBIT, %

EBIT,

MEUR

Excludes IKI costs in 2017 & 2018

ESTONIA

...even though total market shareis slightly weaker

Market shares,

Estonia 2018 (growth vs 2017)

Market shares,

Latvia 2018 (growth vs 2017)

Market shares,

Lithuania 2018 (growth vs 2017)

23,5%

19,1%

17,3%

14,9%

6,8%

18,4%

(-0,7 pp)

(+0,1 pp)

27,4%

27,5%11,2%

5,7%

4,7%

23,5%

(+0,8 pp)(0,0 pp)

(+0,2 pp)

(0,0 pp)

(-0,6 pp)

36,1%

14,3%10,3%7,2%

8,1%

23,9%

Maxima

Other

Lidl

Prisma

Selver

Coop

Norfa IKI

Rimi

OtherOther

Maxima

MaximaRimi

RimiTop

Mego

Elvi

(+0,8 pp)

(+0,1 pp)

(+0,3 pp)

(-0,6 pp)

(-0,4 pp)(+0,1 pp)

(-0,7 pp)(+0,1 pp)

(-0,1 pp)

(+1,2 pp)

(-0,6 pp)

– Much due to store conversions in Latvia

LATVIA LITHUANIA

5 SOURCE: government statistics, company annual reports & information in mass media.

But all-time high for Rimi brand market share

2 509 MEUR 2 828 MEUR 4 534 MEUR

Market shares,

Estonia 2018 (growth vs 2017)

Market shares,

Latvia 2018 (growth vs 2017)

Market shares,

Lithuania 2018 (growth vs 2017)

23,5%

19,1%

17,3%

14,9%

6,8%

18,4%

(-0,7 pp)

(+0,1 pp)

24,1%

3,4%

27,5%11,2%

5,7%

4,7%

23,5%

(+0,8 pp)(0,0 pp)

(+0,2 pp)

(0,0 pp)

(-0,6 pp)

36,1%

14,3%10,3%7,2%

8,1%

23,9%

Maxima

Other

Lidl

Prisma

Selver

Coop

Norfa IKI

*Rimi brand

OtherOther

Maxima

MaximaRimi brand

Rimi brandTop

Mego

Elvi

(+0,8 pp)

(+0,1 pp)

(+0,3 pp)

(+0,7 pp)

(+1,1 pp)(+0,1 pp)

(-0,7 pp)(+0,1 pp)

(-0,1 pp)

(+1,2 pp)

(-0,6 pp)

SuperNetto(-1,5 pp)

ESTONIA LATVIA LITHUANIA

6 SOURCE: government statistics, company annual reports & information in mass media.

* SuperNetto market share in 2017: 1,3%

Main focus areas to strengthen position

Price Product Place Communication People

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Online grocery market size* in Baltic countries is small but growing

~15

~22

~25

0

5

10

15

20

25

30

LATVIA LITHUANIA ESTONIA

MEUR

0.5% 0.5% 1.0%Online grocery market share, %

Online grocery sales MEUR, 2018

Maxima: «We plan to have

7 MEUR turnover in Latvia

and 20 MEUR in Lithuania

this year (2018)»

Barbora: «Our revenue in

2017 increased by 36%»

Selver: «E-Commerce sales

has reached a full

hypermarket turnover.»

Coop: «Our online sales

can be compared to largest

supermarket sales.»

8 * Estimate, 2018

Rimi will have e-commerce in all markets in H1 2020with the ambition to be number one by end of 2022

October 2019 Q1 2020 Q2 2020

Customer promise for assortment will

be delivery on time and good quality

Orders will be assembled in Rimi

Hypermarket stores

Customer offering focus is on wide fresh

and fruit and vegetable assortment

1. Rimi Drive‒ Drive by our store – we will

bring your order to your car

2. In-store click & collect‒ Pick up your order near the

store entrance

3. Home delivery‒ Receive goods in the

comfort of your home

Offering fundamentals Delivery methods at launch

Latvia Lithuania Estonia

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Focus areas and key initiatives in order to realize our digitalization strategy

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Drivers of

digitalization

Ambition

2025

1. Omnichannel

customer

experience

Rimi offers the most

appreciated grocery

shopping in all

channels

2. Personalized

customer

experience

Rimi simplifies

customers’ everyday

life with personalized

experience in all

channels

3. Innovative and

fast-moving

organization

Rimi is externally

recognized as

innovators

4. Data &

analytics driven

business

Rimi uses data

insights to improve

decisions throughout

the company

5. Digitalization

of internal

processes

Rimi saves time, cost

and mistakes through

digital processes

We deliver the shopping experience of tomorrow

Rimi is investing in self service shopping

Ambition for 2020 is to grow self service check-out

share of total transactions from 20% to 25%

Self check-out Self scanning

Introduced 2014 2019

Active stores 132 6

Average usage share 31% 11%

Development priorities

▪ Pilot cash payment options in

selected locations

▪ Launch compact designs for

convenience locations

▪ Grow store footprint

▪ Grow adoption rates

(marketing, build awareness)

▪ Launch solution for cardless

handle release

▪ Grow store footprint

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“TO MAKE EVERYDAY A LITTLE BETTER”

Rimi Express will offer improved and extended assortment of convenience and meal solutions

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Rimi Express

“2.0” conceptPricing strategy

HMR strategy Expansion ambition

▪ Price is already different

▪ Different assortment based

on location

▪ Mix giving approx. 10%

better margins

▪ Great salad and sushi bar

▪ Focus on fresh and healthy

(juices, smoothies, F&V, etc.)

▪ Improved coffee offer (quality,

surrounding stories)

▪ Size ~150-200m2

▪ Location with tourist and

office areas

▪ Ambition 2020: 26 stores

▪ Ambition 2022: 50 stores

▪ 3 clear store zones:

fresh/food to go – food

for later – eat here

▪ Open visual landscape:

lower furniture, open space

by the entrance

2019 and 2020 is already secured with contracted locations

and 2021 moving on well

We will have 100 stores in Lithuania by the end of 2023

+5

2019

+9

2020

+12

2021

+12

2022

+12

2023

13

56

New Baltic warehouse to be operational in Q3 2020

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Progress on digital initiatives

Extract further cost efficiencies

Improve market share position

Managing growth and profitability –well prepared for new competition

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Forward-looking statements

This presentation contains forward-looking statements. Such statements are subject to risks

and uncertainties as various factors, many of which are beyond the control of ICA Gruppen AB

(publ.), may cause actual developments and results to differ materially from the expectations

expressed in this presentation.

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Disclaimer