Axfood q2 2010 presentation in english

1. Axfood AB
Interim Report
April – June, 2010
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2. Axfood AB April - June 2010
• Consolidated sales:
SEK 8,583 m (8,216), an
increase of 4.5%
• Stable operating profit:
SEK 279 m (269)
• Operating margin: 3.3% (3.3)
• Like for like sales: -1.9%
• High activity in all areas
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3. Willys April - June 2010
• Stable and profitable development
• Like for like sales affected by
competition and a weak food retail
market
• Increased market share
• High pace in store establishments
– Six new stores
– Number of stores: 159 (142)
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4. Hemköp April - June 2010
• Positive result and like for like sales
– Successful marketing strategy
• Changes in store structure
– Number of Group-owned stores: 65 (76)
• Targeting EBIT margin of 1% 2010
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5. PrisXtra April - June 2010
• Unsatisfying development
• Decrease in sales for two stores
due to major road work
• Possible positive EBIT for full year
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6. Axfood Närlivs April - June 2010
• Acquisition of cold-storage distribution
centre
• New delivery agreements
– Reitan Servicehandel Sverige AB
(5 years)
– Preem (2 years)
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7. Dagab April - June 2010
• Best service level ever in June: 97.8%
• Good cost control
• Satisfying cooperation with Vi-stores
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8. Market trends 2010
• No major changes in the market
conditions
• Continued fierce competition
• Price conscious customers
• Price inflation remain at low levels
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9. Strategy for profitable growth
• Good cost control and efficiency
• High pace in store establishments
• Develop the various concepts
• Optimize customer offerings
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10. Axfood´s goal for 2010
To achieve an operating profit
at least in level with 2009
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11. Financial
Performance
April – June, 2010
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12. Axfood AB April - June 2010
• Improved operating profit
• Like for like sales: -1.9%
Group, SEK m 2010 2009 Change
Net sales 8,583 8,216 +4.5 %
Operating profit 279 269 + 3.7%
Operating margin 3.3% 3.3% -
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13. Willys April - June 2010
Sales Operating profit
+3,9%
4,665 4,492
195 177
-10 -09 -10 -09
2010 2009
Operating margin 4.2% 3.9%
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14. Hemköp April - June 2010
Sales Operating profit
1,224 1,344
10
-09
-10 -09 -10
-10
2010 2009
Operating margin 0.8% - 0.7%
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15. PrisXtra April - June 2010
• Decrease in sales for two stores due
to major road work
PrisXtra, SEK m 2010 2009 Change
Net sales 161 175 - 8.0%
Operating profit -3 3 -
Operating margin - 1.9% 1.7% -
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16. Axfood Närlivs April - June 2010
• Stable development
– Distributed sales increased by
3.8 %
Axfood Närlivs, SEK m 2010 2009 Change
Net sales 1,491 1,468 + 1.6%
Operating profit 34 38 -
Operating margin 2.3% 2.6% -
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17. Dagab April - June 2010
• Successfull cooperation with Vi-stores
• Service level in June: 97.8%
Dagab, SEK m 2010 2009 Change
Net sales 6,422 6,159 + 4.3%
Operating profit 34 36 -
Operating margin 0.5% 0.6% -
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18. Other January - June 2010
• Sales: SEK 1 026 m (887)
• Operating profit: SEK 9 m (25)
• Lower result due to negative effect of
the reduction of profit in internal
inventories
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19. Key ratios
• Balance sheet, total: SEK 7,556 m
(7,129)
• Cash flow operating activity: SEK
708 m (695)
• Capex: SEK 454 m (319)
• Equity ratio: 32.9% (30.7)
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20. Strong financial position
Q1 2006 – Q2 2010
2 000 1,25
Debt, short term, MSEK
Debt, long term, MSEK
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 Q1 Q2
2006 2007 2008 2009 2010
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21. Financial targets & dividend policy
• Axfood´s goal for 2010 is to achieve
an operating profit at least in level
with 2009
• 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%
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22. Time for
questions!
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