axfood presentation year-end report 2012
TRANSCRIPT
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Axfood
January-December, 2012
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Axfood January-December 2012
• Favourable sales: SEK 36,306 m (34,795) +4.3%
• Stable earnings: SEK 1,247 m (1,250) exkl impairment– Operating margin: 3.4% (3.6) exkl
impairment
• Positive result for all business units
• Impairment of SEK 55 m for the PrisXtra brand
36,306+4.3%
Net sales
Willys – Best result ever
• Stable sales growth: SEK 19,407 m (18,904), +2.7%– Like-for-like sales: 0.0% (-1,6)
• Good result: SEK 796 m (775) +2.7%
– Operating margin: 4.1% (4.1)
• High pace in store modernization– Remaining 20 stores will be modernized
during this year
• Developed a customer loyalty program that will be launched next week 796
+2.7%
Operating profit
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Hemköp – Best result in 10 years
• Good sales performance: SEK 5,082 m (4,787), +6.2%
– Like-for-like sales: +2.0% (0,4)
• Best result in ten years: SEK 133 m (94)
– Operating margin: 2.6% (2.0)
• Target 2013: At least 3% operating margin
• Increased marketing activities
• Thomas Gäreskog appointed as new CEO in December +6.2%
Net sales
PrisXtra’s largest store to become Hemköp
• PrisXtras largest store at Norra Station will become Hemköp in 2013– Future strategic location
• Remaining four stores will gradually be converted to Hemköp or Willys
• Impairment of SEK 55 m for the PrisXtra brand
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PrisXtra – Continued positive result
• Decrease in sales due to major road constructions– Net sales: SEK 502 m (549), -8.6%
• Positive result: SEK 16 m (15)
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Axfood Närlivs – Wholesale operation
• Favourable sales growth, SEK 6,336 m (5,516), +14.9%
– Deliveries to new customers and good development in cash-and-carry business
– New e-commerce site for business-to-business– Sales affected by bad weather conditions
• Operating profit: SEK 113 m (110)
+14.9%Net sales
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Dagab – Efficient logistics
• Stable development– Efficiency and high delivery reliability
• Operating profit: SEK 163 m (192)– Increased costs due to implementation of the
new business system– Will continue to affect the result during 2013
97.5%Delivery reliability
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Market outlook
• Uncertain development in Swedish economy but stable food retail market
• Food price inflation initially at low levels
• Competition remains high
• Price conscious customers
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Strategy for profitable growth
• Further stimulate sales growth– Well operated stores
• High level of private label
• Efficiency and cost control
• Ambitious pace of investment– High pace in store establishments and
renewals– Implementation of the new business
system continues
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Axfood’s goal for 2013
Achieve an operating profit
at the same level as in 2012
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Financial Overview
January-December, 2012
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 36,306 34,795 4.3%
Change in like-for-like sales, % 0.3% -1.1% 1.4
Operating profit 1,192 1,250 -4.6%
Operating margin, % 3.3% 3.6% -0.3
Number of stores, Group-owned 246 237 9
Axfood January-December 2012
9,044 9,2528,914 8,718
9,292
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4-12
2.8
3.44.1
3.6
2.8
• Stable earnings and sales development
• Impairment of SEK 55 m for the PrisXtra brand
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 19,407 18,904 2.7%
Change in like-for-like sales, % 0.0% -1.6% 1.6
Operating profit 796 775 2.7%
Operating margin, % 4.1% 4.1% -
Number of stores 174 170 4
Willys January-December 2012
4,9614,7014,848 4,9274,818
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12
4.4 4.53.94.1
3.6
• Best result ever
• High pace in store modernization
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 5,082 4,787 6.2%
Change in like-for-like sales, %, Group-owned 2.0% 0.4% 1.6
Operating profit 133 94 41.5%
Operating margin, % 2.6% 2.0% 0.6
Number of stores Group-owned Franchise
67 114
62 121
5-7
Hemköp January-December 2012
1,2711,2391,255
1,3471,225
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12
1.7
2.6
4.1
1.9 1.9
• Good profit and sales performance
• Increased marketing activities
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 502 549 -8.6%
Change in like-for-like sales, % -8.6% -10.0% 1.4
Operating profit 16 15 6.7
Operating margin, % 3.2% 2.7% -0.5
Number of stores 5 5 -
PrisXtra January-December 2012
113130132140
127
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12
3.8 3.5
2.4
3.63.0
• Positive result
• PrisXtra stores will be converted to Hemköp or Willys
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 6,336 5,516 14.9%
Distributed sales 5,822 4,992 16.6%
Operating profit 113 110 2.7%
Operating margin, % 1.8% 2.0% -0,2
Number of stores, Axfood Snabbgross 20 20 -
Delivery reliability, % 97.9 97.7 0.2
Axfood Närlivs January-December 2012
1,673
1,4411,3821,5701,652
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12
1.7
3.0
1.71.7
0.6
• Good sales mainly driven by deliveries to new customers and new businesses
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Net sales, SEK m Operating margin, % Key ratios
SEK m 2012 2011 Change
Net sales 24,634 24,295 1.4%
Distributed sales 17,205 16,981 1.3%
Operating profit 163 192 -15.1%
Operating margin, % 0.7% 0.8% -0.1
Delivery reliability, % 97.5 97.1 0.4
Dagab January-December 2012
6,2646,0226,2736,3486,000
Q4 -11 Q1 -12 Q2 -12 Q3 -12 Q4 -12
0.6
0.80.7
0.9
0.5
• Increased costs due to implementation of the new business system
– Will continue to affect the result during 2013
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Other January-December 2012
• Net sales: SEK 4,521 m (4,156), +8.8%
• Operating profit: SEK -29 m (64)– Impairment of SEK 55 m for the PrisXtra
brand– Amortization of new business system of
SEK 55 m (33)
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Key ratios January-December 2012
• Balance sheet, total: SEK 8,798 m (8,278)
• Cash flow operating activity: SEK 1,915 m (1,384)
• Capex: SEK 932 m (993)– Investment plan 2013: SEK 900-1,000 m
• Reduced company tax rate had a positive effect on profit after tax by SEK 50 m
• The Board of Directors proposes a dividend of SEK 12 per share (12)
0
200
400
600
800
1 000
-09 -10 -11 -12
SEK m
Capital expenditure
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Financial targets & dividend policy
• Axfood's goal for 2013 is to achieve an operating profit at the same level as in 2012
• Equity ratio of at least 25%
• Shareholder dividend of at least 50% of profit for the year after tax
• Long term target for an operating margin of 4%
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Summary
• Stable result and sales performance
• All business units delivered a positive result
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Axfood
Q&A