Axfood AB · OMXSTO:AXFO
Axfood AB — FY2011 Earnings Presentation
23 slides from Axfood AB's earnings presentation, February 2012
Slide 1: Axfood January – December 2011
Axfood January – December, 2011 1
Slide 2: Axfood January – December 2011
Axfood January – December 2011 • Stable sales development: SEK 34,795 m (34,260), + 1.6% • Improved result: SEK 1,250 m (1,209), +3.4% • Operating margin: 3.6% (3.5) • High pace in store establishments and modernizations • Generally weak market 2
Slide 3: Hemköp January – December 2011
Hemköp January – December 2011 • Strengthened result and stable like- for-like sales • Conversion of Vi-stores to Hemköp franchise finalized – 43 stores have been converted • 2% operating margin 2011 • Target 2012: 3% operating margin 3
Slide 4: Willys January – December 2011
Willys January – December 2011 • Stable development and good operating margin – 4.1% (4.1) operating margin • High pace in store establishment and modernization • Like-for-like sales affected by – Weak growth for stores that are still not modernized – Increased competition, both internal and externa
Slide 5: PrisXtra January – December 2011
PrisXtra January – December 2011 • Improved result – Operating profit: SEK 15 m (-5) • Unsatisfying sales development – Two stores are affected by major road work – Strategic locations in the future 5
Slide 6: Axfood Närlivs January – December 2011
Axfood Närlivs January – December 2011 • Good sales growth in all areas – Total sales increased by 8.9% – Good development in the cash and carry operation • Renewed agreement with OKQ8 and new agreement with Svenska Statoil • Signed an agreement to acquire 50% of Hall Miba – Provides care products t
Slide 7: Dagab January – December 2011
Dagab January – December 2011 • Continued improved efficiency – Good service level: 97.1% • Ambitious sustainability programme 7
Slide 8: Increased private label share
Increased private label share • Highest private label share so far: 24,2% • Target 2012: 25% private label share 8
Slide 9: Market outlook 2012
Market outlook 2012 • Uncertain market development – Consumption is slowing • Food price inflation at low levels • New salary agreements ahead with uncertain outcome • Continued tough competition • Price conscious customers 9
Slide 10: Strategy for profitable growth 2012
Strategy for profitable growth 2012 • Stimulate sales growth • Cost control and efficiency • Continued high level of establishments and modernization of stores • Implementation of a new business system continues • Increase private label share 10
Slide 11: Axfood's goal 2012
Axfood’s goal 2012 To achieve an operating profit at the same level as in 2011 11
Slide 12: Financial Overview
Financial Overview January – December, 2011 12
Slide 13: Axfood January – December 2011
Axfood January – December 2011 • The best result ever • Cost control and efficiency Axfood group, SEK m 2011 2010 Förändring Net sales 34,795 34,260 + 1.6% Operating profit 1,250 1,209 + 3.4% Operating margin 3.6% 3.5% - 13
Slide 14: Willys January – December 2011
Willys January – December 2011 • Stable development and good result • Like-for-like sales: -1.6% Sales Operating profit 18,904 18,613 772 775 Operating margin 4.1% -10 -11 -10 -11 14
Slide 15: Hemköp January – December 2011
Hemköp January – December 2011 • Improved result • Like-for-like sales: +0.4% • Target 2012: 3% operating margin Sales Operating profit 4,978 4,787 94 Operating margin 45 -10 -11 -10 -11 +4.1% 2.0% 15
Slide 16: PrisXtra January – December 2011
PrisXtra January – December 2011 • Strengthened result • Sales continues to be affected by major road constructions PrisXtra, SEK m 2011 2010 Förändring Net sales 549 637 - 13.8% Operating profit 15 -5 - Operating margin 2.7% - 0.8% - 16
Slide 17: Axfood Närlivs January – December 2011
Axfood Närlivs January – December 2011 • Good sales growth in all areas – New agreements – Positive development for the cash and carry business Axfood Närlivs, SEK m 2011 2010 Förändring Net sales 6,365 5,847 + 8.9% Operating profit 110 113 - 2.7% Operating margin 1.7% 1.9% - 17
Slide 18: Dagab January – December 2011
Dagab January – December 2011 • Stable development – Good cost control and efficiency Dagab, SEK m 2011 2010 Förändring Net sales 25,813 25,701 + 0.4% Operating profit 192 189 + 1.6% Operating margin 0.7% 0.7% - 18
Slide 19: Other January – December 2011
Other January – December 2011 • Sales: SEK 4,161 Mkr (4,052) • Operating profit: SEK 64 m (95) – Amortization of new business system SEK 33 m (16) 19
Slide 20: Key ratios January – December 2011
Key ratios January – December 2011 • Balance sheet, total: SEK 8,278 m (7,664) • Cash flow operating activity: SEK 1,384 m (1,365) • Capex: SEK 993 m (862) – Investment plan 2012: SEK 900 – 1,000 m • The Board of Directors proposes a dividend of SEK 12 per share (12) 20
Slide 21: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011 • 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% 21
Slide 22: Summary
Summary • The best result ever – Cost control and efficiency • Continued focus on profitable growth 22
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