Axfood AB · OMXSTO:AXFO
Axfood AB — FY2006 Earnings Presentation
20 slides from Axfood AB's earnings presentation, February 2007
Slide 1: Axfood AB Year-end report January-December 2006
Axfood AB Year-end report January-December 2006
Slide 2: Axfood's best result ever
Axfood AB 1 January–31 December 2006 Axfood’s best result ever. Operating profit for the period was SEK 1,204 m (1,040). The operating margin* was 3.9% (3.7%). Operating profit for the fourth quarter was 266 MSEK (215). The operating margin* was 3.6% (3.0%). Retail sales for Axfood’s wholly owned st
Slide 3: Trends in the retail food market
Trends in the retail food market Continued fierce competition, especially from newly established stores. Saturation in the market. More and more alternatives. Competition from restaurants. Discount and luxury at the same time. Health, organic products and ethics. More immigrants, seniors and singles
Slide 4: Businesses: Willys
Businesses 1 January-30 December 2006 Sales for the Willys group rose 8.5% during the year. Like-for-like sales rose 1.3%. Sales for wholly owned stores amounted to SEK 3,879 m (3,665) during the fourth quarter. Operating profit for the year was SEK 558 m (506). The operating margin was 3.7% (3.6%).
Slide 5: Businesses: Hemköp
Businesses 1 January-30 December 2006 Sales for Hemköp's stores – both wholly owned and franchises – rose 0.2% during the year. Sales for wholly owned Hemköp stores during the year decreased by 6.1%. Like-for-like sales decreased by 0.2%. Sales for franchise stores rose 13.5%, with a 3.6% rise in li
Slide 6: Businesses: Dagab
Businesses 1 January-30 December 2006 Operating profit for the year was SEK 226 m (272). Operating margin was 1.1% (1.4%). Operating profit for the third quarter was SEK 68 m (72). Dagab's earnings are lower, and the operation is now more closely integrated with the store chains. Dagab's distributed
Slide 7: Businesses: Närlivs
Businesses 1 January-30 December 2006 Närlivs Operating profit for the year was SEK 108 m (103). The operating margin was 2.4% (2.2%). Operating profit for the fourth quarter was SEK 20 m (17). Axfood Närlivs is showing a favourable trend in sales and operating profit despite fierce competition. När
Slide 8: Top of the agenda
Top of the agenda To turn around Hemköp. Organic growth. Continued integration. 8 YEAR-END REPORT, JAN-DEC 2006 | AXFOOD
Slide 9: Dividend and future outlook
Dividend and future outlook The Board of Directors proposes an ordinary dividend of SEK12.00 per share (9.00), plus an extra dividend of SEK 8.00 per share (6.00), for a total dividend of SEK 20.00 per share (15.00). Forecast: In view of the continued fierce competitive climate, Axfood expects opera
Slide 10: Key ratios
Key ratios Oct.-Dec. Jan.-Dec. SEK m 2006 2005 2006 2005 Net sales 7 384 7 305 28 808 28 086 Operating profit 266 215 1 204 1 040 Operating margin, % 3,6 3,0 3,9 3,7 Profit after financial items 261 212 1 183 1 026 Profit after tax 188 150 852 729 Earnings per share, SEK 3,59 2,75 16,03 13,37 Equity
Slide 11: Change in store structure
Change in store structure Establish- Sales/ Conversions Dec. 2005 ment Acquisitions closures to/from Dec. 2006 Hemköp 87 - - -10 -1 76 Willys 100 9 - -5 1 105 Willys hemma 48 1 - -6 - 43 Total, wholly owned 235 10 - -21 - 224 Hemköp franchises 77 - 6 -1 - 82 11 YEAR-END REPORT, JAN-DEC 2006 | AXFOOD
Slide 12: Net sales, own and franchise stores
Net sales, own and franchise stores Oct.-Dec Like for like Jan.-Dec. Like for like 2006, Mkr % stores % 2006, Mkr % stores % Hemköp 1 477 -8,3 -1,6 5 779 -6,1 -0,2 Hemköp franchise 849 4,5 0,7 3 362 13,5 3,6 Hemköp total 2 326 -4,0 -0,8 9 141 0,2 1,1 Willys 3 587 7,0 2,1 13 926 9,9 1,6 Willys hemma
Slide 13: Net sales per business unit
Net sales per business unit Oct.-Dec. Jan.-Dec. SEK m 2006 2005 2006 2005 Hemköp 1 489 1 623 5 829 6 198 Willys 3 879 3 665 15 115 13 926 Axfood Närlivs 1 152 1 178 4 570 4 680 Dagab 5 399 5 235 20 572 19 487 Other 254 224 947 848 Internal sales -4 789 -4 620 -18 225 -17 053 Net sales from continuin
Slide 14: Operating profit (EBIT) by business unit
Operating profit for the period (EBIT), broken down by business unit Oct.-Dec. Jan.–Dec. SEK m 2006 2005 2006 2005 Hemköp 17 -7 79 30 Willys 135 110 558 506 Axfood Närlivs 20 17 108 103 Dagab 68 72 226 272 Other 26 23 233 129 Operating profit for the period from continuing operations 266 215 1 204 1
Slide 15: Condensed profit and loss account
Condensed profit and loss account Oct.-Dec. Jan.-Dec. SEK m. 2006 2005 2006 2005 Continuing operations Net sales 7 384 7 305 28 808 28 086 Cost of goods sold -6 347 -6 316 -24 760 -24 172 Gross profit 1 037 989 4 048 3 914 Selling/administrative expenses, etc. -771 -774 -2 844 -2 874 Operating profi
Slide 16: Condensed profit and loss account, cont.
Condensed profit and loss account, cont. Of which, majority owner's share 188 111 852 687 Of which, minority owner's share - -1 - -5 Operating profit for continuing operations includes depreciation/amortization of 123 119 474 438 Earnings per share, SEK 3,59 2,03 16,03 12,59 Earnings per share after
Slide 17: Condensed balance sheet
Condensed balance sheet SEK m 31/12/2006 31/12/2005 Assets Goodwill 1 131 1 131 Interest-bearing receivables 24 – Financial fixed assets 31 32 Other fixed assets 1 736 1 684 Total fixed assets 2 922 2 847 Inventories 1 473 1 598 Accounts receivable - trade 514 486 Interest-bearing receivables 13 – O
Slide 18: Condensed balance sheet, cont.
Condensed balance sheet, cont. Shareholders' equity and liabilities Majority owner's share of shareholders' equity 2 420 2 825 Minority owner's share of shareholders' equity – 119 Total shareholders' equity 2 420 2 944 Interest-bearing long-term liabilities 385 383 Noninterest-bearing long-term liab
Slide 19: Condensed cash flow statement
Condensed cash flow statement Jan.-Dec. SEK m 2006 2005 Operating activities –Cash flow from operating activities before changes in working capital before taxes paid 1 693 1 487 –Taxes paid -684 -241 –Changes in working capital 151 -76 Cash flow from changes in working capital 1 160 1 170 Investing
Slide 20: Key ratios and other data
Key ratios and other data 31/12/2006 31/12/2005 Operating margin, % 3,9 3,7 Margin after financial items, % 4,1 3,7 Equity ratio, % 39,8 38,9 Debt-equity ratio, net, multiple 0,0 0,02) Debt-equity ratio, multiple 0,19 0,22 Interest coverage, multiple 43,2 31,6 Capital employed, SEK m 2 887 3 603 Ret