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Axfood AB

Interim Report

July – Sept, 2010

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Axfood AB July - September 2010

• Consolidated sales: SEK 8,582 m (8,049), an increase of 6.6%

• Stable operating profit: SEK 364 m (335)

• Operating margin: 4.2% (4.2)

• Strengthened market position

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Willys July - September 2010

• Strong results

• Like for like sales affected by increased competition

• Increased market share– Growing number of stores– Improved shopping experience– Right price and product mix

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Hemköp July - September 2010

• Positive result and like for like sales– Successful marketing strategy

• New store in Stockholm City

• Targeting EBIT margin of 1% 2010

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PrisXtra July - September 2010

• Unsatisfying development

• Decrease in sales for two stores due to major road work

• Possible positive EBIT for full year

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Axfood Närlivs July - September 2010

• Increased sales and market share– New agreements– Relatively good weather

conditions

• EBIT margin affected by competitive market

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Dagab July - September 2010

• Strong service level

• Good cost control

• Satisfying cooperation with Vi-stores

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Market trends 2010

• Soft food retail market

• Food price inflation on moderate levels

• Fierce competition

• Price conscious customers

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Strategy for profitable growth

• Develop the various concepts

• Optimize store operations

• Stimulate sales growth

• Good cost control and efficiency

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Axfood´s goal for 2010

To achieve an operating profit at least at the same level as in 2009

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Financial Performance

July – Sep, 2010

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Axfood AB July - September 2010

• Strong result– Improved operating profit

-

+ 8.7%

+6.6 %

Change

4.2%4.2%Operating margin

335364 Operating profit

8,0498,582Net sales

20092010Group , SEK m

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Willys July - September 2010

+6.3%

Sales Operating profit

-10 -09

4,3844,660

-10 -09

214 199

4.5%4.6%Operating margin

20092010

+7.5%

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Hemköp July - September 2010

Sales Operating profit

-10 -09

1,276 1,164

-10 -09

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11

1.5%0.9%Operating margin

20092010

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PrisXtra July - September 2010

• Decrease in sales for two stores due to major road work

-

0

- 7.7%

Change

0.6%0.7%Operating margin

11Operating profit

155143 Net sales

20092010PrisXtra, SEK m

1616

Axfood Närlivs July - September 2010

• Good sales developement– Distributed sales increased by 5.5 %

-

- 17.3%

+ 4.9%

Change

3.5%2.7%Operating margin

5243Operating profit

1,4981,571 Net sales

20092010Axfood Närlivs, SEK m

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Dagab July - September 2010

• Stable development

• Good cost control and efficiency

-

+ 52.6%

+ 7.3%

Change

0.6%0.9%Operating margin

3858 Operating profit

5,9466,379 Net sales

20092010Dagab, SEK m

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Other July - September 2010

• Sales: SEK 993 m (845)

• Operating profit: SEK 37 m (26)

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Key ratios January - September 2010

• Balance sheet, total: SEK 7,367 m (7,025)

• Cash flow operating activity: SEK 1 037 m (1 017)

• Capex: SEK 592 m (439)

• Equity ratio: 37.2% (34.6)

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Financial targets & dividend policy

• Axfood's goal for 2010 is to achieve an operating profit at least at the same level as in 2009

• 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%

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Summary

• Stable development

• Strong result

• Increased market share

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Time for questions!