Market leader investing for continued growth

Transcription

1 Market leader investing for continued growth Capital Markets Day, ICA Gruppen 10 December 2014 Anders Svensson, CEO ICA Sverige AB, Deputy CEO ICA Gruppen

2 ICA Sweden in brief

3 49 years as market leader 11.5 million customer visits per week 2.5 million digital customer visits per week Market share 36.7% Store sales SEK million Net sales SEK MSEK 1,330 stores 7,617 employees (excluding stores) 2013 figures ICA Gruppen CMD

4 Stores which meet customer needs every day Number of stores: 79 Sales: SEK 30,122 million No. of items: 29,000 38,000 Surface: 6,500 9,000 sq.m. Number of stores: 124 Sales: SEK 24,141 million No. of items: 12,000 19,000 Surface: 2,715 5,000 sq.m. Number of pharmacies: 67 (dec 2014) No. of items: 3,800 Surface: 160 sq.m. Number of stores: 431 Sales: SEK 31,730 million No. of items: 7,000 11,000 Surface: 1,200 2,550 sq.m. Number of stores: 680 Sales: SEK 15,508 million No. of items: 4,000 8,000 Surface: 600 1,100 sq.m Number of stores: 4 No. of items: Surface: sq.m Sales Number of stores at 30 September ICA Gruppen CMD

5 A unique idea Independent retailers in cooperation ICA Gruppen CMD

6 ICA Sweden main supplier to ICA retailers Brands and marketing Product range development and sourcing Support for store operation Logistics Establishment and upgrades Retailer recruitment New business Our unique expertise is to encourage the entrepreneurial spirit and meet customer expectations through dialogue and collaboration. ICA Gruppen CMD

7 ICA Sweden s earnings via business model The model gives ICA Sweden the incentive to promote sales and earnings in stores Revenue from stores via ICA contract 24%* Sale of services to stores 2% Supply of goods to stores (wholesaling) 74% *Including sales from integrated ICA Maxi Non food sales ICA Gruppen CMD

8 Stable growth in sales and margin performance SEKm Net sales SEKm EBIT& margin 1) ,0% CAGR +4% +3.8% ,5% 5,0% ,5% 4,0% ,5% ,0% ,5% Jan-Sep Jan-Sep 1) EBIT & margin excluding non-recurring items ICA Gruppen CMD

9 EBIT % of Store sales ICA Sweden vs ICA stores ICA Gruppen CMD

10 Five assets for continued success An extensive store network Knowing the customer A strong brand A unique idea Independent retailers in cooperation Dedicated employees ICA Gruppen CMD

11 Market and trends

12 ICA stores continue to gain market share Procent % 10,0 by value (Värde) 6,0 8,0 5,0 6,0 4,0 4,0 3,0 2,0 2,0 0,0 1,0-2,0 0,0-1,0-4,0-2,0-6,0 Procent (Värde) October +6,5% Sep Okt Nov Dec Jan Feb Mar Apr Maj Jun Jul Aug Sep November +1.9% Dagligvarubutiksmarknaden Dagligvarubutiksmarknaden Grocery retail Food inflation ICA ICA, jämförbara ICA enheter ICA, jämförbara like-for-like Prisfaktor stores enheter ICA stores sales (incl. non food) and grocery retail sales development ICA Gruppen CMD

13 Strong consumer trends Digital & analogue Healthy & natural Simple & convenient Shopping experience Value-formoney & smart Sustainable & local Personal & involved Open & honest ICA Gruppen CMD

14 Increasing competition Modest market growth rate Players have same focus Challenge from discounters Challenge from restaurants & online ICA Gruppen CMD

15 Hard discounters gain ground in Europe ICA Gruppen CMD

16 Fulfilling customer needs

17 Holistic approach through value equation In-store experience Product range Ord. price Promotional price Value ICA Gruppen CMD

18 Strong focus on fresh food, private label and price ICA Gruppen CMD

19 Private label drives customer value A good deal for the customer, the store and ICA Sweden Goal: annual PL share growth 1% High rate of innovation Sustainable, healthy, local and organic Meal solutions as total concept Increased focus on mid product range and mid/low product range to meet hard discount Develop added value concepts across the ranges ICA Gruppen CMD

20 Positive development of private label share *The method used to calculate private label share was changed in Previous figures are not fully comparable with later figures. ICA Gruppen CMD

21 Sustainability is close to the heart of our customers ICA Gruppen CMD

22 Focus on the future

23 Simplify choices for a healthy life Health is the one most important factor in the customers aim for quality in life Closely connected to food potential in food and meals Build a unique position by overall health offer ICA Gruppen CMD

24 Stong presence in digital channels 2,5 million digital customer contacts every week ICA Gruppen CMD

25 Moving towards Next Generation Marketing by digital communication and tools Meet and involve customers in new arenas Mobile platforms exceed desktop Multifunctional app ICA Handla Inspiration Shopping list Selfscanning Payment ICA digital marketing tripled in 2014 ICA Gruppen CMD

26 Development of loyalty program 3,8 million active customers in our loyalty program ICA Gruppen CMD

27 Deepened customer insight in market segments Clear and differentiated formats Information on drivers, attitudes and buying behaviour Common platform based on customer insights when buying ICA Gruppen CMD

28 Customer need for simplicity and convenience drives our multichannel offer ICA Gruppen CMD

29 Store openings and upgrades focused on metropolitan areas

30 Store openings 2014 and A further 3-5 new stores are planned to open during the year. ICA Gruppen CMD

31 Store sales per square metre Q Sales/sales square meter* * From 2011we have a slightly changed calculation method ICA Gruppen CMD

32 Continued high upgrade rate together with ICA retailers ICA Gruppen CMD

33 Building a stronger marketplace A convenience format A focused format for coffee ICA Gruppen CMD

34 Reducing costs and improving efficiency focus on logistics infrastructure 2015 Fewer but larger and more modern warehouses Ensure handling of continued volume and assortment growth for above all fresh food BORLÄNGE Increase automation and use of technology Borlänge Total project investment (excl. building expansion) ~ 235 MSEK Västerås Kallhäll Kungälv Helsingborg Arlöv ICA Gruppen CMD

35 Market leader investing for continued growth Continued strong performance Improving the customer offer Investing for future growth Stable growth in sales and EBIT margin 14 quarters of consecutive market share gains Stable development with ICA retailers Better multichannel experience Evolving product range; health, private label, fresh food Competitive pricing strategy Key investments for the future Digitalisation of communication and sales Loyalty programme Improved logistics network ICA Gruppen CMD

36 Appendix

37 The Swedish ICA stores fees to ICA Sweden is regulated by the business model Required Voluntary Profit Joint organisation So called ICA Fee Based on the stores net sales (%) Additional services at market rates e.g financial and marketing Wholesale profit Based on wholesale sales (%) Logistics fee Based on wholesale sales (%) Cost-based additional services e.g store IT ICA agreements, royalties, dividends Royalties are based on store net sales (%) ICA Gruppen CMD