Year-end Report 2005 President and CEO Claes-Göran Sylvén
Vision With the ownership in ICA AB as a base, Hakon Invest shall be one of the leading companies in the Nordic region that invests in the retail area. We shall be the natural partner for retail companies that want to develop.
Affärsinriktning Texts in notes Aktiv och inflytelserik ägare i ICA AB Hakon Invest AB Långsiktiga investeringar huvudsakligen i olistade handelsföretag i Norden 40% ICA AB 100% Portföljbolag Forma PG Genom aktivt ägarskap bidra till tillväxt och lönsamhet i innehavsbolagen. Framtida investeringar Framtida investeringar Vi Viskapar förutsättningar för för entreprenörskap, tillväxt och och lönsamhet inom inom handel 2
Hakon Invest 2005 Consolidated profit after tax rose 48% in 2005 to SEK 856 M (579) Earnings per share totaled SEK 5.32 (3.60) ICA s profit after tax in 2005 was SEK 1,523 M (1,515) Forma s profit after tax in 2005 was SEK 52 M (43) Dividend: SEK 4.50 per common share
Significant events 2005 New Group organization Establishment of investment organization Listing on Stockholm Stock Exchange O-List Positive reception on the market
ICA AB 2005
ICA - significant events 2005 New organization ICA invested for future growth ICA increases market shares in Sweden Process of change in Norway Baltic operations in JV-company with Kesko
ICA AB - sales ICA AB s net sales in 2005 amounted to SEK 71,663 M (73,334), a decline of 2.3%. In comparable units, adjusted for divestment of the Danish operations and that ICA Baltic is no longer consolidated, net sales rose by 3.8%. In the fourth quarter, net sales for comparable units increased by 4.1% to SEK 19,281 M.
ICA AB - earnings Operating profit in 2005 amounted to SEK 1,958 M (1,977), down 1.0%. Profit after tax was SEK 1,523 M (1,515). Operating profit in the fourth quarter was SEK 617 M (356), an increase of 73.3 %.
ICA operating profit per segment SEK M Q4 2005 Q4 2004 Q1-4 2005 Q1-4 2004 ICA Sverige 553 536 1,607 1,774 ICA Norge 181-35 534 399 ICA Baltic 23 5 42-99 ICA Danmark 2 10 2-258 ICA Meny 12-27 11-53 ICA Banken - 17-29 - 75-123 ICA AB - 137-104 - 163 337 TOTAL 617 356 1,958 1,977
ICA - operating margin Q4 and 2005 Unit 5 4 4.4 3 2 3.2 2.7 3.4 3.5 2.8 1 0 ICA AB ICA Sverige ICA Norge Q 4 2005 Källa: Hakon Invest
ICA AB operating margin % unit 4 3 2 3.2 2.7 2.7 1 1.8 0 4th quarter Full year 2005 2004 Källa: Hakon Invest
Operating margin % ICA Sverige och ICA Norge Enhet 5 Enhet 4 4 3 2 1 0 4,5 4,5 4th Quarter 3,4 Full Year 3,9 3 2 1 0 3,5 4th Quarter 0,0 2,8 Full Year 2,1 2005 2004 2005 2004 ICA Sverige ICA Norge Källa: Hakon Invest
Forma Publishing Group
Forma 2005 Forma invested for continued expansion. Revenues in 2005 unchanged at SEK 596 M (596) Operating profit in 2005 amounted to SEK 54 M (59). Profit after tax in 2005 was Forma s best to date, SEK 52 M (43)
Year-end Report 2005 CFO Göran Hesseborn
Year-end Report 2005 Key figures SEK M Q4 2005 Q4 2004 Q1-4 2005 Q1-4 2004 Revenues 166 163 611 622 Cost of goods sold - 69-107 - 299-301 Gross profit 97 56 312 321 Other operating income 2 2 4 5 Selling and administrative expenses - 93-21 - 334-307 Share in earnings of JV 171 117 588 466 Operating profit 177 154 570 485 Net financial items 88 96 372 109 Profit after financial items 265 250 942 594 Income tax - 17-5 - 86-15 Profit for the period 248 245 856 579 Earnings per share 1.54 1.52 5.32 3.60
Hakon Invest Financial position No long-term liabilities Equity/assets ratio of 95% (95.7) Cash, cash equivalents and short-term investments amounted to SEK 3,046 M (2,729) Net financial items improved to SEK 372 M (109)
Hakon Invest - Cash-flow statement Group (SEK M) 2005 2004 Cash flow from operating activities 281 244 Cash flow from investing activities 94-121 Cash flow from financing activities - 325-141 Cash flow for the period 50-18 Cash and cash equivalents, Jan. 1 505 523 Exchange difference in cash and cash equivalents 1 Cash and cash equivalents, Dec. 1 556 505
Hakon Invest - return % Unit 14 12 10 8 6 12.4 9.4 11.3 8.2 4 2 0 Return on capital employed Return on equity 2005 2004 Källa: Hakon Invest
Hakon Invest - dividend Parent Company profit after tax: SEK 441 M Proposed dividend per common share, SEK 4.50 Total of SEK 355 M is proposed for distribution to the holders of common shares Corresponds to 80% of Parent Company net profit
Share price performance Introduction price: SEK 77 Market price, Dec. 31, 2005: SEK 93.50 Källa: di.se
Ownership after listing Shareholders No. of shares % capital and votes ICA-handlarnas Förbund - Solna 108,385,227 67.4 Nordea fonder 1 506,449 0.9 SEB fonder 769,400 0.5 Samuelsson, Tomas 753,400 0.5 Jönsson, Leif incl. companies 683,480 0.4 Roburs fonder 512,000 0.3 Ottosson, David 453,032 0.3 Håkan Olofssons Förvaltning 425,000 0.3 Persson, Sverker 400,516 0.2 Sylvén, Claes-Göran incl. companies 377,196 0.2 Ten larest shareholders, total: 114,265,700 71.0 Other shareholders 46,651,736 29.0 Total 160,917,436 100.0 Total number of shareholders: 13,075 Källa: VPC 2005-12-31
The year ahead Hakon Invest shall continue to be an active owner in ICA AB and Forma to create growth and profitability New investments have high priority and with large inflow of objects we are looking forward to 2006. ICA AB continues high rate of establishment of large stores in Sweden and Norway. Forma broadens product offering through organic growth and acquisitions.
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