Axfood AB · OMXSTO:AXFO
Axfood AB — FY2007 Earnings Presentation
34 slides from Axfood AB's earnings presentation, 2008
Slide 1: Axfood AB Year-End Report 2007
Axfood AB Year-End Report 2007
Slide 2: Axfood AB 1 January–31 December 2007
Axfood AB 1 January–31 December 2007 The EBIT target was reached. Strong earnings: SEK 1,121 m (1,204 including SEK 89 m from the Vi-settlement). A stable and good EBIT margin: 3,8% (3,9). Satisfying sales performance: SEK 29,189 m (28,808). 2 2008 | AXFOOD
Slide 3: Summary of 2007
Summary of 2007 A challenging year with strong competitive pressure Focus on sales and profitability Good cost control Improved logistics Successful integration of purchasing and assortment 3 2008 | AXFOOD
Slide 4: Willys
Willys 2007: The best result so far, + 19%, despite slower expansion 2008: Launch of renewal program & 4 new stores to secure position – General face-lift – More opening hours – An incresed assortment – Broader focus on fresh and organic products – A new marketing mix 4 2008 | AXFOOD
Slide 5: Hemköp
Hemköp Unsatisfying profitability but clear focus on long term development strategy Review of store operations New marketing mix New price strategy and product mix New loyalty card 9 new stores in 2007 3 new stores in 2008 5 2008 | AXFOOD
Slide 6: Dagab
Dagab Improved level of service Implementation of a new storage organization Successful test of Autoorder 2008: Launch of Autoorder 6 2008 | AXFOOD
Slide 7: Närlivs
Närlivs Favourable development in 2007 New contracts Streamlined organization Challenge in 2008: Increased competition 7 2008 | AXFOOD
Slide 8: Acquisition of PrisXtra
Acquisition of PrisXtra Important strategic acquisition strengthening the position on the Stockholm market Adds third concept Five stores and one internet store with annual sales of approx SEK 700 m 8 2008 | AXFOOD
Slide 9: Outlook 2008
Outlook 2008 A challenging market with remaining fierce competition and agressive establishment of new store space. Raw material costs will continue to affect consumer prices, primarily dairy products and meat. Higher transportation costs. 9 2008 | AXFOOD
Slide 10: Strategic priorities for profitable growth
Strategic priorities for profitable growth Sales and profitability in existing stores Cost control Improvement and development of store concepts Strenghtening our position New opportunities 10 2008 | AXFOOD
Slide 11: Forecast 2008
Forecast 2008 Axfood´s goal is to remain the most profitable company in the industry and we forecast the operating profit for 2008 to be in level with 2007. 11 2008 | AXFOOD
Slide 12: Financial Performance Jan - Dec 2007
Financial Performance Jan - Dec 2007 12 2008 | AXFOOD
Slide 13: Axfood AB 1 January–31 December 2007
Axfood AB 1 January–31 December 2007 Continued positive and stable operating result: SEK 1,121 m (1,204 incl settlement from Vi of SEK 89 m) The EBIT-margin for 2007: 3,8% (3,9) Consolidated sales for 2007: SEK 29,189 m (28,808) 13 2008 | AXFOOD
Slide 14: Operating profit and margin 2003 - 2007
Operating profit and margin 2003 - 2007 Mkr 1 200 6,0% 1 000 5,0% 800 4,0% 600 3,0% 400 2,0% 200 1,0% 0 0,0% 2003 2004 2005 2006 2007 14 2008 | AXFOOD
Slide 15: Like-for-like sales development in wholly owned stores
Like-for-like sales development in wholly owned stores– 4,0% 3,5% 3,0% 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% -0,5% -1,0% Q1 2007 Q2 2007 Q3 2007 Q4 2007 15 2008 | AXFOOD
Slide 16: Axfood AB 1 January–31 December 2007
Axfood AB 1 January–31 December 2007 Operating profit for 2007: SEK 1,121 m (1,204, incl. SEK 89 m from the settlement with Vi) Operating margin: 3,8% (3,9) Operating profit in Q4: SEK 264 m (266) Operating margin in Q4 : 3,4% (3,6) 16 2008 | AXFOOD
Slide 17: Axfood AB 1 January–31 December 2007
Axfood AB 1 January–31 December 2007 Consolidated sales for the period: SEK 29,189 m (28,808) Consolidated sales in Q4: SEK 7,653 m (7,384) Retail sales for Axfood’s wholly owned stores rose 0.5 % during the year .Like-for-like sales rose 1.1% In Q4 sales in wholly owned stores rose 3.0 %. Like-for-
Slide 18: Performance 1 January–31 December 2007
Performance 1 January–31 December 2007 Sales for the Willys group in 2007: SEK 15,382 m (15,115) Sales for the Willys group rose 1.8 % during 2007. Like-for-like sales rose 1.7 % Sales in Q4: SEK 4,033m (3,879) Operating profit for the year was SEK 666 m (558).An increase of 19 %.The EBIT margin was
Slide 19: Performance 1 January–31 December 2007
Performance 1 January–31 December 2007 Total sales for Hemköp in 2007 SEK 5,674 m (5,829) Sales for Hemköp's stores, wholly owned and franchises, rose 1.7 % in 2007. Like-for-like rose 0.5% Sales in Q4: SEK 1,496 m (1,489) Operating profit for 2007: SEK 53 m (79). Operating margin: 0,9% (1.4) Operat
Slide 20: Performance 1 January–31 December 2007
Performance 1 January–31 December 2007 Närlivs Sales in 2007 amounted to SEK 5,465 m (5,465). 149 stores Sales in Q4: SEK 1,403 m (1,379). Operating profit for 2007 was SEK 101 m (108) 230 stores The operating margin for 2007 was 1.8 % (2.0%) Operating profit in Q4: SEK 23 m (20) 20 2008 | AXFOOD
Slide 21: Performance 1 January–31 December 2007
Performance 1 January–31 December 2007 & others Dagabs sales during 2007 totalled SEK 21,294 m (20,572) Sales in Q4: SEK 5,697 m (5,399) Operating profit for Dagab and others in 2007: SEK 301 m (459, including the settlement from Vi). Operating profit for Q4 including others: SEK 61 m (94) 21 2008 |
Slide 22: Balance sheet and cash flow statement
Balance sheet and cash flow statement Balance sheet total SEK 6,608 m (6,075) Cash flow operating activity: SEK 1,166 m (1,160) Capital expenditure: SEK 576 m (587) 22 2008 | AXFOOD
Slide 23: Equity ratio and dividend
Equity ratio and dividend The equity ratio: 32.6 percent (39.8) The equity ratio should be at least 25% The dividend policy since 2004: To pay out a minimum of 50% of profit after tax Proposed dividend: SEK 12.00 (12.00), corresponding to 81 % of profit after tax 23 2008 | AXFOOD
Slide 24: Summary financial development
Summary financial development Stable and positive result in line with our forecast Continued excellent EBIT margin, 3.8 percent We forecast an operating profit for 2008 in level with 2007. 24 2008 | AXFOOD
Slide 25: Thank you for your attention
Thank you for your attention Time for questions 25 2008 | AXFOOD
Slide 26: Appendix
Axfood AB 1 January–31 December 2007 Appendix 26 2008 | AXFOOD
Slide 27: Key ratios
Key ratios Oct.-Dec. Jan.-Dec. SEK m 2007 2006 2007 2006 Net sales 7 653 7 384 29 189 28 808 Operating profit 264 266 1 121 1 204 Operating margin, % 3,4 3,6 3,8 3,9 Profit after financial items 255 261 1 086 1 183 Profit after tax 183 188 781 852 Earnings per share, SEK 3,48 3,59 14,88 16,03 Equity
Slide 28: Change in store structure
Change in store structure Establish- Conversions Dec. 2006 ment Acquisitions Sales/ closures to/from Dec. 2007 Hemköp 76 2 1 - 0 79 Willys1) 148 2 - -12 0 138 Total, wholly owned 224 4 1 -12 - 217 Hemköp franchises 82 1 3 0 - 86 1) Of which Willys hemma 43 - - -8 -2 33 28 2008 | AXFOOD
Slide 29: Net sales, own and franchise
Net sales, own and franchise Oct.-Dec. Like-for-like Jan.-Dec. Like-for-like 2007, SEK m % sales % 2007, SEK m % sales % Hemköp 1 482 0,4 -0,1 5 620 -2,8 -0,9 Hemköp franchises 963 11,7 5,1 3 675 9,3 2,7 Hemköp total 2 445 4,6 1,9 9 295 1,7 0,5 Willys total 4 033 4,0 4,8 15 382 1,8 1,7 Total 6 478 4
Slide 30: Net sales, per business unit
Net sales, per business unit Oct.-Dec. Jan.-Dec. SEK m 2007 2006 2007 2006 Hemköp 1 496 1 489 5 674 5 829 Willys 4 033 3 879 15 382 15 115 Axfood Närlivs 1 403 1 379 5 465 5 465 Dagab 5 697 5 399 21 294 20 572 Other 389 254 1 230 947 Internal sales -5 365 -5 016 -19 856 -19 120 Net sales, total 7 65
Slide 31: Operating profit for the period (EBIT), broken down by business unit
Operating profit for the period (EBIT), broken down by business unit Oct.-Dec. Jan.–Dec. SEK m 2007 2006 2007 2006 Hemköp 2 17 53 79 Willys 178 135 666 558 Axfood Närlivs 23 20 101 108 Dagab 43 68 131 226 Other 18 26 170 233 Operating profit for the period, total 264 266 1 121 1 204 31 2008 | AXFOOD
Slide 32: Condensed balance sheet
Condensed balance sheet SEK m 31/12/2007 31/12/2006 Assets Goodwill 1 182 1 131 Interest-bearing receivables 13 24 Financial non-current assets 30 31 Other non-current assets 1 755 1 736 Total non-current assets 2 980 2 922 Inventories 1 597 1 473 Accounts receivable ― trade 685 514 Interest-bearing
Slide 33: Condensed balance sheet, cont
Condensed balance sheet, cont Shareholders' equity and liabilities Equity attributable to equity holders of the parent 2 152 2 420 Total shareholders' equity 2 152 2 420 Interest-bearing non-current liabilities 587 385 Noninterest-bearing non-current liabilities 168 157 Total non-current liabilities
Slide 34: Condensed cash flow statement
Condensed cash flow statement Jan.-Dec. SEK m 2007 2006 Operating activities –Cash flow from operating activities before changes in working capital before paid tax 1 531 1 693 –Paid tax -330 -684 –Changes in working capital -35 151 Cash flow from operating activities 1 166 1 160 Investing activities