2. Another successful year for Axfood
• Stable growth:
32,378 Mkr (31 663) + 2.3%
• Positive operating profit:
1,128 Mkr (1 077)
• Operating margin: 3.5%
(3.4)
3
We met the objectives in 2009
Objectives 2009 Outcome
Operating profit of at Operating profit SEK 1,128
least SEK 1 billion m
Equity ratio of at least Satisfied the solvency goal
25% each quarter
The board proposes
Dividend to shareholders
dividend of SEK 10 per
of at least 50% of profit
share - or 66%
after tax
of net income quarter
Profitability for Hemköp Operating profit SEK 28 m
4
3. Hemköp
• Positive profit despite excluded
restructuring costs of SEK 46 m
– Operating profit: SEK 28 m (-8)
• 2010: Focus on sales growth and
improved profitability
5
Willys
• Continued solid performance
– Operating profit: SEK 731 m (730)
• “Sweden’s cheapest bag of
groceries”.
• 2010: Sales growth and 5 new stores
6
4. PrisXtra
• Not satisfying profitability
– Operating profit: SEK 6 m (9)
• Reduced sales in two stores
due to major roadworks
• 2010: Focus on improving
profitability and growth
7
Axfood Närlivs
• Continued profitability despite
fierce competition
– Operating profit: SEK 132 m
(110)
• Axfood Snabbgross showed
continued excellent sales
performance
8
5. Dagab
• Excellent service levels, 96.8%
• Operating profit: SEK 147 m (138)
• Cooperation with the Vi Retailers
Association was resumed in
November
9
New business system
• To better support Axfood strategies
• The project runs for 5 years
• Total investment: SEK 500-600 m
10
6. Sustainable development
• New code of conduct
• New sustainability program
– Reduce climate impact by
75% by 2020
11
Strong financial posistion
Q1 2006 – Q4 2009
2 000 1,25
Debt, short term, SEK m
Debt, long term, SEK m
Debt equity ratio mutiple
1 600 1
1 200 0,75
800 0,5
400 0,25
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2006 2007 2008 2009
12
7. Dividend
• Policy: Dividends to shareholders
of at least 50% of profit after tax
• The Board proposes a dividend
of SEK 10 per share (SEK 8)
13
Market trends 2010
• Continued high price competition
• Increased price consciousness
among customers
• Price inflation remained low
14
8. Strategy for profitable growth
• Stimulate sales
• Continued strong cost control
• Pursue the development of our
concepts
• Refine our strategy of pricing
and product range
• Optimize store operations
• Further develop our private labels
15
Axfood 10 years on the stock market
Operating profit, SEK m
1 250
1 000
750
500
250
0
-00 -01 -02 -03 -04 -05 -06 -07 -08 -09
16
9. Objective 2010
Achieve an operating profit
in line with 2009
17
Thank you
for your attention!
