Year-end report February 12, Per Strömberg, CEO Merlin Poljak, Acting CFO

Transcription

1 Year-end report 213 February 12, 214 Per Strömberg, CEO Merlin Poljak, Acting CFO

2 Strategic priorities have effect Continued positive development in Q4 Net sales up 1.5%* EBIT excluding non-recurring items +19% Q4 213 Q4 212 proforma 213 Proforma 212 Proforma Our work with strategic priorities proceeding according to plan Increased sales Share of private labels (PL) increasing Continued efficiency improvements in logistics Continued challenges in ICA Norway Impairment on Portfolio companies of SEK -223 million Changed accounting principles Board proposes dividend of 8 SEK/share Net sales 25,964 25,865 99,456 99,62 EBIT excluding nonrecurring items ,4 2,715 EBIT ,547 2,67 Profit for the period , EBIT margin excluding nonrecurring items 3.7% 3.1% 3.% 2.7% EBIT margin 2.5% 3.1% 2.6% 2.6% Earnings per ordinary share * Adjusted for currency fluctuations compared with pro forma for corresponding period in 212 2

3 Important events during the fourth quarter Extended review of planned cooperation between ICA Norway and Norgesgruppen. Notification is expected by the end of February at the latest. Group financial targets adopted and evaluation of the portfolio companies finalized. Continued re-financing of bridge loan ICA Gruppen issued unlisted preference shares in ICA Fastigheter Sverige AB for SEK 3. billion. ICA Gruppen raised a SEK 1 billion bilateral loan with AB Svensk Exportkredit. Handelsbanken loan of SEK 2.3 billion (February 214), last part of bridge loan refinanced. ICA Real Estate divested two properties with Maxi ICA Hypermarket as tenant to Ancore. The underlying property value amounts to approximately SEK 435 million. ICA Bank named as Sweden s best retail bank (SKI, Swedish Quality Index). 3

4 Segments during the quarter ICA Sweden Store sales in line with the market. Price development lower in general in Q4 compared to beginning of the year. Strategic priorities according to plan: Private label share of sales rose to 21.4% (19.6%*) during 213. Good sales growth for Cura pharmacies. Extension and modernisation of distribution centre in Helsingborg according to plan. *2.1% according to new definition 4

5 Segments during the quarter (cont d) ICA Norway Awaiting decision from the competition authority regarding co-operation with Norgesgruppen by the end of February. Continuous measures to drive sales, lower costs regarding purchasing, logistics and administration. Continuous launch of new price strategy in Rimi stores. Rimi Baltic Strong development for Rimi stores in Latvia and Lithuania. Three new stores during the quarter Eight new stores opened during the year, larger Supermarkets and Hypermarkets in attractive locations. Eight of the smaller loss-making stores have been closed. 5

6 Segments during the quarter (cont d) ICA Bank Number of customers increase. Magazine Privata Affärer rank ICA Bank as the priority bank for students. Recruitment of new CEO in final stage. ICA Real Estate ICA Real Estate divested two properties with Maxi ICA Hypermarket as tenant to Ancore. The underlying property value amounts to approximately SEK 435 million. Portfolio companies Evaluation of portfolio companies finalized Forma, Kjell & Co and Cervera will be sold Continued possibilities to develop inkclub and Hemtex 6

7 The quarter in figures

8 Sales development in Q4 Group net sales increased by.4% driven by increased turnover in all segments except ICA Norway. Adjusted for comparable currency sales increased by 1.5% Net Sales () Net sales adjusted for currency 1.5% Q4 212* Q figures pro forma 8

9 Earnings development Q4 Group EBIT excluding non-recurring items increased by 19% driven by improved operating profit in ICA Sweden, ICA Norway, Rimi Baltic, ICA Bank and Portfolio companies. ICA Norway s EBIT still weak, however improved due to lower shrinkage and lower costs EBIT excl. non-recurring items () EBIT excluding nonrecurring items +19% Q4 212* Q4 213 *212 figures pro forma 9

10 Continued positive sales development in Swedish ICA stores Store sales excl. VAT October-December 213 January-December 213 Change total Change like-for-like Change total Change like-for-like Maxi ICA Hypermarket % 1.9% % 3.1% ICA Kvantum % 1.5% % 2.1% ICA Supermarket % 1.4% % 3.% ICA Nära % 1.4% % 2.5% TOTAL % 1.6% % 2.7% Performance compared with same period in 212 1

11 ICA Sweden Increased net sales and higher EBIT in Q4 Increased net sales driven by higher sales within wholesale, and Cura pharmacies. Q4 213 Q4 212 Jan- Dec 213 Jan- Dec 212 Net sales 17,62 17,184 67,992 65,75 EBIT excl. non-recurring items EBIT margin excl. non-recurring items ,58 2, % 4.7% 4.5% 4.4% Private label share 21.4% 19.6%* Number of stores 1,321 1,33 Improved EBIT excluding nonrecurring items Higher sales at higher margins driven by increased PL share. Lower EBIT within non food Net sales +2.4% Q4 212 Q *2.1% according to new definition Net sales EBIT excl. non-recurring items 11

12 ICA Norway Lower sales but EBIT improved in Q4 Continued weak sales. EBIT excluding non-recurring items improved due to lower shrink and lower store costs. Cost-cutting measures led to lower administrative expenses. Fundamental challenges remain. Q4 213 Q Net sales Jan-Dec 213 Q4 212 Q4 213 EBIT excl. non-recurring items Jan-Dec 212 Net sales 4,144 4,681 16,463 19,5 EBIT excl. non-recurring items EBIT margin excl. non-recurring items % -3.4% -4.2% -3.1% Private label share 9.7% 9.6% Number of stores incl. Matkroken

13 Rimi Baltic Strong ending of the year Sales increased by 5.2% in local currency. Higher sales and good cost control contributed to increased EBIT. Depreciations in Q4 SEK 2 million higher due to revaluation of real estate. Increase in private label share of sales. Q4 213 Q Net sales Q4 212 Q3 213 Jan-Dec 213 EBIT excl. non-recurring items Jan-Dec 212 Net sales 2,838 2,625 1,333 1,5 EBIT excl. non-recurring items EBIT margin excl. non-recurring items % 3.9% 3.% 2.6% Private label share 14.2% 12.6% Number of stores Sales +5.2% in local currency

14 ICA Bank Positive development of EBIT Higher net interest income from increased lending volumes. Counteracted by lower repo rate which rendered in lower margins. EBIT includes reversal of earlier provisions for loan losses 2 Q4 213 Q4 212 Jan-Dec 213 Jan-Dec 212 Net sales EBIT excl. non-recurring items EBIT margin excl. nonrecurring items % 12.5% 23.7% 22.2% Business volume 24,772 23,272 1 Q4, SEK 23 million Full year, SEK 34 million 1 Q4 212 Q4 213 Net sales EBIT excl. non-recurring items 14

15 ICA Real Estate Stable development Market valuation of real estate portfolio increased depreciation. Q4 SEK -42 million Q4 213 Q4 212 Jan-Dec 213 Jan-Dec 212 Net sales EBIT excl. non-recurring items * EBIT margin 21.5% 25.9% 23.% 28.8% Full year SEK -129 million (9 months). New establishments, including the acquisition of the warehouse property in Helsingborg made a positive contribution to earnings. Change in accounting principle for sale and leaseback properties Q4 212 Q4 213 Net sales EBIT excl. non-recurring items *212 results includes income from sold ICA Maxi stores in Norway of SEK 56 million. 15

16 Portfolio companies Good Christmas sale Cervera and Hemtex increased sales while it was in line with last year in inkclub and slightly lower in Forma. In total for the segment profit excluding non-recurring items improved due to higher Christmas sales in Cervera and Hemtex. Last year s costs includes costs for depreciation of inventory in Forma Books with 6 Mkr Q4 213 Q4 212 Q4 212 Q4 213 Net sales Jan-Dec 213 EBIT excl. non-recurring items Jan-Dec 212 Net sales ,657 2,726 EBIT excl. non-recurring items EBIT margin excl. non-recurring items % 3.7%.8% -4.5%

17 Net sales and operating profit per segment Q4 Net sales, Q4 213 Q4 212 ICA Sweden 17,62 17,184 ICA Norway 4,144 4,681 Rimi Baltic 2,838 2,625 ICA Bank ICA Real Estate Portfolio companies Other 2 37 Intra-group sales Net sales 25,964 25,865 EBIT excl. non-recurring items Q4 213 Q4 212 ICA Sweden ICA Norway Rimi Baltic 113* 11 ICA Bank ICA Real Estate 123** 144 Portfolio companies Other EBIT excl. non-recurring items *Includes depreciation of SEK 2 million **Includes depreciation of SEK 42 million 17

18 Non-recurring items Q4 213 Q4 212 Jan-Dec 213 Jan-Dec 212 EBIT excl. non-recurring items , Capital gain ICA Real Estate Capital gains other Impairment Whereof Portfolio companies Other Effects of acquisitions - - 8,51 - EBIT ,

19 Changed accounting principle for Sale & leaseback properties Changed accounting principle for sale & leaseback properties means that these no longer will be accounted for in ICA Gruppen s balance sheet. No impact on Group net cash flow. The change is valid retroactive. Historical numbers are recalculated. Equity increase by SEK 1,51 million Assets reduced by SEK 2,448 million Liabilities reduced by SEK 3,949 million Impact due to change SEK million Quarter Full year EBITDA Depreciation EBIT Interest expenses Net profit EBIT margin* -.3 ppt -.3 ppt ROCE* Net debt/ebitda* -.5 ppt +.2x *ICA Gruppen 19

20 Stable cash flow from operating activities Cash flow from operating activities * SEK million Former ICA AB Group ICA Gruppen *excluding ICA Bank 2

21 SEK billion Bridge loans re-financed 19 5 In February 214, the last portion of the bridge loans were re-financed SEK 5 billion new share issue to the company s shareholders in May Bonds issued in SEK in June for SEK 5 billion Preference shares in ICA Fastigheter Sverige AB, SEK 3 billion in December Bilateral loan of SEK 1 Billion was granted in December. 2.3 Payment from own cash SEK 2.7 billion Last part of bridge loans refinanced in February 214 SEK 2.3 billion. 21

22 ICA Gruppen s net debt almost at target level ICA Gruppen net debt/ proforma EBITDA Net debt Q3 SEK 13.9 billion. Net debt decreased to SEK 9.2 billion in Q4, corresponding to 2.1 x EBITDA proforma. Preferential shares Strong cash flow x 2.7x 2.8x 2.1x Long-term target <2.x 1 Q1 213 Q2 213 Q3 213 Q

23 ICA Gruppen s financial targets Target Full year 213 Long-term To grow faster than the market Sweden Norway Baltics All markets Operating margin excluding nonrecurring items 3.% 4.% Return on capital employed* 6.1% 9.% Net debt/ EBITDA** 2.1x <2.x Dividend (% profit for the year) 68% 5% * Excluding ICA Bank ** Interest-bearing liabilities excluding pensions and ICA Bank minus cash and cash equivalents in relation to EBITDA, excluding effects of acquisition, before depreciation and impairment. 23

24 Strategic priorities outcome and 214

25 Strategic priorities 213 Strategic themes Strengthen customer loyalty and brand position Strengthen and expand our customer offering Optimize and broaden our sales channels Simplify our business Engage and develop our people Excel in corporate responsibility Strategic priorities Turnaround the Norway business Increase profitable private label penetration Ensure competitive pricing and fair price perception Develop portfolio strategy Build a leading position online Grow the retail business (in Sweden and Baltics) Collaborate to capture synergies across OpCos Ensure efficient operations with focus on supply chain Develop ICA s common values 25

26 Strategic priorities 214 Strategic themes Strengthen customer loyalty & brand position Strategic priorities 1 Turn around the Norway business 2 Develop and leverage leading CRM New Strengthen & expand our customer offering Optimize & broaden our sales channels Simplify our business Engage & develop our people Further strengthen the Private Label offering Ensure competitive pricing and fair price perception Implement the portfolio and non-food strategy Build a leading position online Strengthen the store network (main focus on Cura, Lithuania, metro Sweden) Exploit sourcing synergies Implement ICA common values New Adjusted Adjusted Adjusted Excel in corporate responsibility 1 Support sustainable customer choices New 26

27 Summary Continued positive development in Q4 Net sales up 1.5%* EBIT excluding non-recurring items +19% Our work with strategic priorities proceeding according to plan Increased sales Share of private labels (PL) increasing Continued efficiency improvements in logistics Continued challenges in ICA Norway Impairment on Portfolio companies of SEK -223 million Changed accounting principles Board proposes dividend of 8 SEK/share * Adjusted for currency fluctuations compared with pro forma for corresponding period in

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