Axfood AB · OMXSTO:AXFO
Axfood AB — FY2009 Earnings Presentation
25 slides from Axfood AB's earnings presentation, 2009
Slide 1: Axfood AB 1 January – 31 December 2009
Axfood AB 1 January – 31 December 2009
Slide 2: Axfood AB 1 January – 31 December 2009
Axfood AB 1 January – 31 December 2009 • Consolidated sales : SEK 32,378 m (31,663), an increase of 2.3% • Good operating profit: SEK 1,128 m (1,077) • Operating margin: 3.5% (3.4) • Positive operating margin in all operations 2
Slide 3: Objectives achieved 2009
Objectives achieved 2009 Objective 2009 Outcome • Achieve an operating profit • Operating profit SEK 1,128 m of at least SEK 1 billion • Equity ratio of at least 25% • Equity ratio target reached every quarter • Shareholder dividend of at least 50% of profit for the • For 2009 the board of Directors
Slide 4: Hemköp 1 January – 31 December 2009
Hemköp 1 January – 31 December 2009 • Positive result despite restructuring costs of SEK 46 m – Improved cost control – Increased gross profit – Closed or converted eight fully owned stores • 2010: Focus on improving sales and profitability – Higher pace of marketing activities – New price strategy
Slide 5: Willys 1 January – 31 December 2009
Willys 1 January – 31 December 2009 • Continued good performance – Stable earnings and sales – Increased number of customers • Leading position in soft discount – Attractive mix between price & assortment • Development of concept according to plan, so far 28 stores • 2010: Sales growth and increase
Slide 6: PrisXtra 1 January – 31 December 2009
PrisXtra 1 January – 31 December 2009 • Unsatisfying sales and profitability • Decrease in sales for two stores due to major road work • 2010: Focus on store performance and increased profitability 6
Slide 7: Axfood Närlivs 1 January – 31 December 2009
Axfood Närlivs 1 January – 31 December 2009 • Good profitability in all parts despite fierce competition • Cash & Carry showed very strong performance 7
Slide 8: Dagab 1 January – 31 December 2009
Dagab 1 January – 31 December 2009 • Improved efficiency and good cost control • Excellent service level • Implementation of Autoorder continued as planned • Deliver to Vi- stores since November 8
Slide 9: New IT platform
New IT platform • New business system to better support all of Axfoods strategies • Project will run over five years • Total investment of SEK 500 - 600 m 9
Slide 10: Market trends 2010
Market trends 2010 • Continued strong price competition • Increased price consciousness among customers • Food inflation at low levels 10
Slide 11: Unchanged strategy for profitable growth
Unchanged strategy for profitable growth • Stimulate sales • Increase efficiency • Continued good cost control • Develop and improve the various concepts • Refine price & product range • Optimize store operations • Continued private label developement 11
Slide 12: Axfood´s goal for 2010
Axfood´s goal for 2010 Is to achieve an operating profit in level with 2009 12
Slide 13: Financial Performance
Financial Performance 1 January – 31 December 2009
Slide 14: Axfood AB 1 January – 31 December 2009
Axfood AB 1 January – 31 December 2009 • Good profitability • Strong cost control • Stable sales Group, SEK m 2009 2008 Change Net sales 32,378 31,663 +2.3 % Operating profit 1,128 1,077 + 4.7% Operating margin 3.5% 3.4% - 14
Slide 15: Hemköp January – December 2009
Hemköp 1 January – 31 December 2009 Sales Operating profit 5,335 5,640 28 -09 -08 -09 -08 -8 2009 2008 Operating margin 0.5% -0.1% 15
Slide 16: Willys January – December 2009
Willys 1 January – 31 December 2009 Sales Operating profit +4.8% 17,589 16,776 731 730 -09 -08 -09 -08 2009 2008 Operating margin 4.2% 4.4% 16
Slide 17: PrisXtra 1 January – 31 December 2009
PrisXtra 1 January – 31 December 2009 • Focus on store performance and improving customer offerings SEK m 2009 2008 Change Net sales 725 653 - Operating profit 6 9 - Operating margin 0.8% 1.4% - 17
Slide 18: Axfood Närlivs 1 January – 31 December 2009
Axfood Närlivs 1 January – 31 December 2009 • Good development in distributed sales • Stable results SEK m 2009 2008 Change Net sales 5,571 5,662 -1.6% Operating profit 132 110 + 20.0% Operating margin 2.4% 1.9% - 18
Slide 19: Dagab 1 January – 31 December 2009
Dagab 1 January – 31 December 2009 • Excellent service level • Good development in distributed sales SEK m 2009 2008 Change Net sales 24,052 23,424 + 2.7% Operating profit 147 138 + 6.5% Operating margin 0.6% 0.6% - 19
Slide 20: Other 1 January – 31 December 2009
Other 1 January – 31 December 2009 • Sales: SEK 3,364 m (1,981) • Operating profit: SEK 84 m (98) • Increased internal sales are driven by fruit & vegetables and centrally packed meat 20
Slide 21: Key ratios
Key ratios • Balance sheet, total: SEK 7,173 m (7,350) • Cash flow operating activity: SEK 1,558 m (1,152) • Capex: SEK 633 m (1,158) • Equity ratio: 36.7% (30.7) 21
Slide 22: Strong financial posistion
Strong financial posistion Q1 2006 – Q4 2009 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 2006 2007 2008 2009 22
Slide 23: Financial targets & dividend policy
Financial targets & dividend policy • Axfood´s goal for 2010 is to achieve an operating profit in level with 2009 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • For 2009 the board of Directors proposes a dividend of SEK10 (8) • Long term targ
Slide 24: Summary financial performance
Summary financial performance • Stable sales and strong result • Efficiency and good cost control • Strong balance sheet & cash flow 24
Slide 25: Time for questions!
Time for questions! axtood