Year-end Report 2011 CLAES-GÖRAN SYLVÉN, CEO GÖRAN BLOMBERG, CFO

Transcription

1 Year-end Report 2011 CLAES-GÖRAN SYLVÉN, CEO GÖRAN BLOMBERG, CFO

2 Hakon Invest Financial information

3 Summary Year-end Report 2011 Operating profit (EBITA) rose to SEK 281 M (-43) in Q4 Tighter corporate governance Review of Portfolio Hemma has been divested Increased ownership in inkclub Review of ownership in Forma Exit ICA Maxi Norway Proposed dividend of SEK 6.25/share (6.00)

4 Improved results in Q4, 2011 Income statement in summary Weak retail market in the fourth quarter ICA Sweden has good sales performance, increase market share Work on the strategic business plan in Norway continues according to plan Improved results in the majority of holdings SEK M 2011 Oct - Dec 2010 Oct - Dec 2011 FY 2010 FY Net sales EBITA Operating profit Net financial items Profit for the year Earnings per share* 1,92-1,94 1,97-1,65 * Earnings per share corresponds to common shares and C-shares for continuing operations 4

5 ICA Group

6 Sales trend for ICA stores Oct-Dec 2011 Jan-Dec 2011 Sales All stores Comp stores Sales All Stores Comp stores ICA Sweden SEK 24,452 M +2.0 % +1.2 % SEK 94,295 M +2.2 % +1.4 % ICA Norway NOK 4,965 M -3.3% -1.6 % NOK 19,353 M -1.8 % +0.6 % Rimi Baltic EUR 295 M +3.9 % +1.8 % EUR 1,111 M +2.8 % +1.6 % The Swedish food retail trade increased by 1.0% in Q4, measured in current prices. For the full year 2011, increase was 1.3% *. *Source: HUI

7 ICA Group, quarterly operating profit excluding capital gains and impairment Mkr Q1 Q2 Q3 Q

8 ICA Group operating profit October December, 2011 Net sales SEK 24,921 M (+1.7 %) Operating profit SEK 947 M (+32%)

9 ICA Norway Sales process for ICA Maxi stores in progress Strategic Business Plan to ensure the conditions for satisfactory profitability in the long run Focus on low-and supermarket segments under the brand names Rimi and ICA Supermarket Changes in logistics structure Streamlining of operations and review of the store network Thorbjørn Theie new CEO, takes office in June 2012 Improved results for ICA Norge 2012

10 ICA Sweden SEK M Rolling 4 quarters Q Q Q Q Q Net sales Q Q Q Q Operating margin Q Q Q ,0% 4,5% 4,0% 3,5% 3,0% 2,5% 2,0%

11 Rimi Baltic 20% 15% 10% 5% 0% -5% -10% -15% -20% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Försäljningsökning jämfört med föregående år (vänster skala) Rörelsemarginal rullande 4 kvartal 4% 3% 2% 1% 0% -1% -2% -3% -4%

12 ICA Group EBITA, Net sales Operating margin * * Excl goodwill impairment

13 Portfolio Companies Financial information

14 Changes/review of ownership in portfolio companies Forma Evaluation of ownership in Forma is expected to ready by summer 2012 inkclub Increased ownership in inkclub to 100% Hemma Hemma has been divested to EEL AB, which owns Elon and Elkedjan.

15 Summary Q4 portfolio companies Q4 Accumulated Holding 100% Lower book sales Weak advertising market affect Magazines Contract growing Revenues Intäkter 190 SEK MSEK 221 M (209) (246) EBIT SEK -5 MSEK 0 M (17) (3) Revenues SEK 847 M (875) EBIT SEK -12 M (15) Stor sales in comp. units +4% More favorable product mix Revenues SEK 223 M (204) Revenues SEK 684 M (644) Holding 50% Growth strategy unchanged EBIT SEK 27 M (18) EBIT SEK 38 M (23) Store sales in comp. units +3% Successful Christmas efforts Revenues SEK 303M (294) Revenues SEK 722 M (707) Holding 91,4% Efficient store operations and more refined product range EBIT SEK 39 M (26) EBIT SEK -12 M (-33)

16 Summary Q4 portfolio companies Q4 Accumulated Holding 100% Sales growth in dustclub, batteryclub, lightclub and Beauty Planet Stronger gross margin Revenues 190 SEK MSEK 133 M (209) (131) EBIT Revenues SEK 504 M (497) EBIT Development of it platform and CRM system SEK -5 MSEK 14 M (3) (12) SEK 34 M (38) Holding 68.5% Has strengthened the position despite shrinking market Store sales in comp. units +4% Focus on increased sales, higher conversion and more products sold per customer Revenues SEK 316 M (333) EBIT SEK 19 M (-5) Revenues SEK 929 M (1,081) EBIT SEK -116 M (-233)

17 Prospects & Focus 2011

18 Future challenges and opportunities ICA AB New strategic business plan to turnaround ICA Norway. Leave hypermarket concept and sell ICA Maxi stores Focus on discount and supermarket segment Extensive cost savings and efficiency improvements Continue to develop, optimize and strengthen ICA Sweden Expansion of store network in Baltic countries, increased investments as economies improve Portfolio companies Evaluation of ownership in Forma Hakon Invest Focus on profitability and development of existing holdings before new investments

19 Hakon Invest Financial information, cont.

20 Operating profit (EBITA) Mkr Operating profit (EBITA) ICA Forma Cervera Hemtex Kjell & Company inkclub

21 Contribution to Hakon Invest s earnings SEK M Subsidiaries (EBT) Oct-Dec 2011 Oct-Dec 2010 Jan-Dec 2011 Jan-Dec 2010 Forma Cervera Hemtex Share of associates (Net profit) ICA ICA (impairment and tax) InkClub Kjell & Company Impairment of goodwill Central costs Operating profit Operating profit (excl. impairment and tax) Hemma Net financial items Parent Company Net financial items Portfolio Companies Tax Profit for the period

22 Investment management return per quarter accumulated % 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Return, accum. % OMX30 accum. %

23 Breakdown of funds for investments Parent Company, at December 31, % (5) 31% (40) 35% (35) Equities Hedge funds Fixed income Cash and cash equivalents 28% (20) Total value at Dec 31, 2011: SEK 797 M (Total value at Dec 31, 2010: SEK 1,136 M)

24 Consolidated balance sheet Interest-bearing liabilities amounted to SEK 438 M (SEK 596 M, Dec 2010) Cash and cash equivalents and short-term investments amounted to SEK 1,001 M (SEK 1,223 M, Dec 2010) Booked value shares in ICA SEK 6,041 M (6,275) Equity/assets ratio: 85.6% (85.0%, Dec 2010) SEK M Dec Dec Non-current assets 8,232 8,362 Current assets 1,828 2,154 Total assets 10,060 10,516 Equity 8,613 8,944 Non-current liabilities Current liabilities 929 1,173 Total equity and liabilities 10,060 10,516

25 Dividend The Board of Directors proposes a dividend of SEK 6.25 per common share Dividend yield of app. 6% Dividend, SEK/aktie Total Return Dec, 2005 Feb, ,00 6,00 5,00 4,00 3,00 2,00 1,00 0,00 HAKN +68% OMXS BGI +35%

26 Business environment and market Other

27 Environment and market Swedish households and retail companies has become clearly pessimistic about the future. Low growth in the retail sector FY2011 was the worst year since Also 2012 is expected to be a weak year for the retail sector 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% Swedish retail annual growth E current prices 0,0% E Source: HUI/SCB

28 Swedish retail development Swedish retail trade index, December 2011 Calender adjusted HUI Forecast Current prices Fixed prices Current prices December Accumulated December Accumulated Food retail 2,5 1,3 2,4 0,1 1,0 2,0 Consumer durables -0,5 0,3 1,0 2,1 1,5 3,0 Total 0,7 0,8 1,5 1,2 1,0 2,5 In December, Optics +4.6% and Paints +2.1,%, had the best sales development, in current prices. At the bottom Home furnishings -5.1%, Electronics -4.9%, Shoes -4.2% and Books/stationery -3.9%. Total retail in current prices increased by 0.8% during FY Q4, 2011 Oct Dec Seasonally adjusted constant prices Current Prices Consumables 1.0% 0.6% Durables -1.1% 0.7% Total retail trade -0.2% 0.6%