Axfood achieved its best results ever in 2010, with sales increasing 5.8% to SEK 34.26 billion and operating profit growing 7.2% to SEK 1.209 billion. Willys and Hemköp saw increases in operating profit of 5.6% and 60.7% respectively through store expansion and improved shopping experiences. Dagab saw operating profit increase 42% through good cost control and service levels reaching 97.2%. For 2011, Axfood plans SEK 900-1,000 million in investments with a goal of at least maintaining its 2010 operating profit level through store openings and modernizations amid continued tough competition.
2. Axfood 2010 – The best result ever!
• Consolidated sales: Sales
SEK 34,260 m (32,378)
+5.8%
• Operating profit:
SEK 1,209 m (1,128)
• Operating margin: 3.5% (3.5)
Operating profit
+7.2%
3. We achieved our 2010 objectives
2010 objectives Outcome
Operating profit at least in
Operating profit +7.2%
level with 2009
Profitable growth Sales growth +5.8%
Dividend to shareholders The board proposes dividend
of at least 50% of profit of SEK 12 per share - 73%
after tax of profit after tax
4. Willys - ambitious year of investment and store establishment
• Strong results and stable sales
development
– Operating profit: SEK 772 m (731)
• Increased market share
– Growing number of stores
– Improved shopping experience
– Right price and product mix
Operating profit
+5.6%
6. Hemköp - Successful marketing strategy
• Increased like for like sales and
continued improved result
– Like for like sales: +2.3%
– Operating profit: SEK 45 m (28)
• New store in Stockholm City
• Targeting EBIT margin of 2% 2011
Operating profit
+60.7%
7. Hemköp – new model for franchisees
• Proposed programme is based on the 91/9- and
1/99-model and requires a decision from the
AGM
• The model makes franchise operations possible
– Regardless of store size
– For establishments/sales/aquisitions
– Training and career opportunities for
Axfood’s staff
• Accepted market model for franchisees
8. PrisXtra - Unsatisfying development
• Operating profit: SEK -5 m (6)
• Result affected by one time cost
of SEK 14 m due to closure of the
smallest store
• Two stores affected by major road
work
– Strategic locations in the future
9. Axfood Närlivs – good growth and increased market share
• New agreements
55%
• Solid profitability and growth
in Axfood Snabbgross
• Result in line with Market share
expectations
– Operating profit:
SEK 113 m (132)
10. Dagab – the hub in Axfood’s supply chain
• Good cost control
– Operating profit: SEK 189 m
(147)
• Best service level ever
• Continued good cooperation
with the Vi-stores
Service level
97.2%
11. Sustainability in all areas
• Sustainability work at an even
higher pace
• Renewable energy
– Wind power plants at Dagab’s
facilities
– Our vehicles drive on pine oil
12. Sustainability in all areas
• Grocery bags made of
renewable materials at Hemköp
• Eco labeling of Willys stores
• New guidelines for waste usage
13. Dividend
• Policy: Shareholder dividend of
at least 50% of profit after tax
• The board proposes dividend of
73%
SEK 12 per share (10) of profit after tax
14. Market trends 2011
• Continued tough competition
• Price conscious customers
• Average 2-3 % food price inflation
• Decent outlook for Swedish
economy
15. Strategy for profitable growth
• Optimize store operations
• Stimulate sales growth
• Good cost control and efficiency
• Increased privat label share
• Price and assortment
16. Ambitious investment strategy 2011
• Approximately 15 new stores
• Modernization of about 40 stores
• Continued implementation of new
business system
• Investment plan 2011:
SEK 900 - 1,000 m
17. Axfood’s goal for 2011
To achieve an operating profit
at least at the same level as 2010