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Axfood

April – June, 2011

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Axfood April – June 2011

• Stable sales growth : SEK 8,889 m (8,583), + 3.6%

• Strong result: SEK 317 m (279), +13.6%

• Operating margin: 3.6% (3.3)

• Continued positive result for all operations

• Generally week Swedish food retail market

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Willys April – June 2011

• Good profitability and stable sales development

• High pace of store modernization

• Like for like sales affected by– Week food retail market– Strong competition

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Hemköp April – June 2011

• Good result and like for like sales

• Expansion of approximately 50 stores 2011– Franchise agreement with

individual Vi retailers

• Target 2011: 2% EBIT margin

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PrisXtra April – June 2011

• Positive operating profit

• Unsatisfying sales development– Two stores are affected by major

road work– Strategic locations in the future

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Axfood Närlivs April – June 2011

• Good sales in all areas– New agreements– Easter holiday sales– Favourable weather

• Renewed agreement with OKQ8– Supply of newsstand and food

retail products

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Dagab April – June 2011

• Favourable earnings– Cost control and efficiency– Good service level, 96.8%

• Successful sustainability work– Received two recognitions for its

active environmental work

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Market trends 2011

• Uncertain market development

• Competition remains high

• Price conscious customers

• Average food price inflation of around 2%

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Strategy for profitable growth 2011

• High level of establishments and modernization of stores

• Good cost control and efficiency

• Stimulate sales growth and increase private label share

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Axfood’s goal 2011

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

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Financial Overview

April – June, 2011

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Axfood April – June 2011

• Continued positive result in all operations

Axfood group, SEK m 2011 2010 Change

Net sales 8,889 8,583 + 3.6%

Operating profit 317 279 + 13.6%

Operating margin 3.6% 3.3% -

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Willys April – June 2011

Operating margin

4.3%

Sales

-10 -11

4,6654,805

Operating profit

-10 -11

195 205

• Good result and stable development

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Hemköp April – June 2011

Operating margin

+4.1%Operating margin

1.9%

Operating profit

-10 -11

10

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Sales

-10 -11

1,224 1,184

• Continued positive result and like for like sales

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PrisXtra April – June 2011

• Positive result

• Unsatisfying sales development

-

-

- 11.8%

Change

- 1.9%2.8%Operating margin

- 34 Operating profit

161142Net sales

20102011PrisXtra, SEK m

1616

Axfood Närlivs April – June 2011

• Good sales growth– New agreements– Easter sales– Favourable weather

-

+ 5.9%

+ 13.4%

Change

2.3%2.1%Operating margin

3436 Operating profit

1,4911,691Net sales

20102011Axfood Närlivs, SEK m

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Dagab April – June 2011

• Good result development– Cost control and efficiency

-

+ 20.6%

+ 3.1%

Change

0.5%0.6%Operating margin

3441 Operating profit

6,4226,623 Net sales

20102011Dagab, SEK m

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Other April – June 2011

• Sales: SEK 1 082 m (1 026)

• Operating profit: SEK 8 m (9)– Amortization of new business

system SEK 8 m (6)

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Key ratios January – June 2011

• Balance sheet, total: SEK 7,975 m (7 556)

• Cash flow operating activity: SEK 638 m (708)

• Capex: SEK 488 m (454)

• Investment plan 2011: SEK 900 – 1 000 m (862)

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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%

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Summary

• Strong result– Good cost control

• Stable sales performance

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