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Annual General Meeting2012

Anders StrålmanPresident and CEO

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The best result ever…

• Operating profit: SEK 1,250 m (1,209) +3.4%

• Operating margin: 3.6% (3.5)

• Stable sales development: SEK 34,795 m (34,260) +1.6%

• Ambitious pace of investment: SEK 993 m (862)– High pace in store establishments and

modernisations

– Continued implementation of a new business system

…despite a generally weak market

1,250+3.4%

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Hemköp – Strengthened result

• Operating profit: SEK 94 m (45)

• Operating margin: 2.0% (0.9)

• Net sales: SEK 4,787 m (4,978), -3.9%– Like-for-like sales: +0.4%

• Target 2012: 3% operating marginOperating margin

2.0%

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Hemköp grows in Stockholm

43 new franchise stores

• Agreement with independent Vi-stores

• Strengthens the Hemköp brand, foremost in Stockholm

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Financing of franchise stores

• Renewed mandate of 10 stores within Hemköp according to decision from the AGM 2011

• 91/9-model for a maximum of 5 years and then 1/99-model

• Market value sales

• The model enables franchise operation

– Development and career opportunities for employees within Axfood

– Also attracts external grocers and store managers outside of Axfood

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Willys – Stable development and good earnings

• Operating profit: SEK 775 m (772) +0.4%

• Operating margin: 4.1% (4.1)

• Net sales: SEK 18,904 m (18,613), +1.6%

• Like-for-like sales affected by:

– Weak growth for stores that are still not modernized

– Increased competition, both internal and external

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High pace in establishments and store renewals

• Åkersberga

• Gamlestaden

• Västervik

• Mora

• Orminge (ny)

• Kungsbacka

• Norrtälje

• Halmstad Öster (ny)

• Örebro Västhaga

• Karlshamn (ny)

• Limhamn

• Uppsala Gottsunda

• Jönköping Österängen

• Söderköping

• Eslöv (ny

• Luleå

• Sundbyberg (ny)

• Häggvik

• Visby

• Kristianstad

• Mjölby (ny)

• Gislaved (ny)

• Bro

• Åtvidaberg

• Tumba

• Nacka Forum (ny)

• Söderhamn (ny)

• Örebro Vivalla

• Dal Ed

• Friskv.torget

• Kaverös

• Täby

• Björkekärr

• Torslanda

• Jönköping

• Utlandagatan

• Lövgärdet

• Laholm

• Sten Sturegatan

• Saltsjöbaden (ny)

• Helsingborg

• Opaltorget

• Skara

• Örebro city

• Säter

11 new stores and 46 modernisations

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PrisXtra full year 2011

• Strengthened result– Operating profit: SEK 15 m (-5)

• Unsatisfying sales development– Net sales: SEK 549 m (637), -13.8%

– Future strategic locations

• Integrated organisation with Hemköp

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Axfood Närlivs – Growing market shares

• Good sales developmet in all areas – Net sales: SEK 6,365 m (5,847) + 8.9%– Operating profit: SEK 110 m (113)– Good service level: 97.7%

• Renewed agreement with OKQ8 and Preem and new agreement with Svenska Statoil

• Signed an agreement to acquire 50% of Hall Miba– Provides care products to service

stations and retailers

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Axfood Närlivs – Wholesaling

100 stores

300 stores

250 stores

300 stores

70 stores

120 stores

400 stores 120 stores

420 stores

80 stores

300 stores

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Dagab – Continues improved efficiency

• Operating profit: SEK 192 m (189), +1.6%– Operating margin: 0.7% (0.7)

• Net sales: SEK 25,813 m(25,701), +0.4%

• Good service level: 97.1%

• Ambitious sustainability programme– Fuel partly based on environment friendly

pine oil

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Sustainable development

• Lower energy consumption

• Improved waste sorting

• Lower carbon emissions from transports

• Climate compensation

• More than SEK 4 m for Save the Children

• Increased employee trainings

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Increased private label share

• Highest private label share so far: 24.2%– Successful conversion to Group-wide

label, Garant

• Target 2012: 25% private label share

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Dividend

• Shareholder dividend of at least 50% of profit for the year after tax

• Equity ratio of at least 25%

• The board proposes a dividend of SEK12 per share (12) 71%

dividend of profit after tax

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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

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Strategy for profitable growth 2012

• Stimulate sales growth– Well operated stores

• Committed employees

• Cost control and efficiency

• Increased private label share

• Ambitious pace of investment– SEK 900 – 1,000 m– Continued high pace in store

establishments and renewals– Implementation of a new business

system continues

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Axfood’s goal for 2012

Achieve an operating profit in line with 2011