2008 Annual Review Axel Johnson
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AXEL JOHNSON AB ANNUAL REVIEW 2008 / MEETINGS / COMPANIES / FIGURES / PEOPLE / STORIES / TRADE VALUES VISIONS / OWNERSHIP STRUCTURE / HISTORY / BOARD OF DIRECTORS / GROUP MANAGEMENT / AXEL JOHNSON GROUP &$$, >c\bg5lY`cb56 5L9@>C<BGCB=BH9FB5H=CB5@%$ 5L:CC8%, A9?CBCA9B&* BCJ5L'( G9FJ9F5(& GJ9BG?69J5?B=B;GH>sBGH)$ H<9t<@vBG;FCID), CifVig]bYgg]gWfYUhYX]bh\YaYYh]b[ k]h\WighcaYfg OUR MISSION IS TO BUILD AND DEVELOP BUSINESSES WITHIN TRADE AND SERVICES SO THAT BOTH COMPANIES AND PEOPLE CAN GROW. Axel Johnson AB builds and develops businesses within trade and services in the European market with the main focus on the Nordic region. We are a family company in the fourth and fifth generations. Our owner is Antonia Ax:son Johnson and her family. We believe in the family company as a form of ownership for sound and long- term business. Our common culture and values are characterized by respect for people, business and relationships. Our mantra is “Customers first.” Customer benefit is the driving force within the entire group, the hub round which all our energy is concentrated. Millions of people meet in or are touched by our operations – every day. In our group of companies keen awareness and innovative thinking are important, as well as a long-term approach and commitment. We place great trust in our em- ployees and know what it takes to achieve long-term success: the courage to try new ideas and the determination to constantly dare to change. CLIENT: AXEL JOHNSON AB: Vice President Communication / Caroline Berg, Project Manager / Sofia Gustafsson. DESIGN, TEXT & PRODUCTION: Annannas Design & Kommunikation AB: Editor / Annica Lewander, design manager / Anna Schroeder, design and layout / Karin Schaefer, coordinator / Ann Edholm, project manager / Anne Wiik, proofs / Jörgen Appelgren and Axel Johnson AB. PHOTO: Fabian Björnstjerna, Jörgen Hildebrandt, Axel Johnson’s photo archives and the photo archives of the individual companies. Thanks to Modernity for the loan of furniture. ILLUSTRATIONS: Lisa Bengtsson. PRINTING: Alfa Print, a Swan ecolabeled printing house. PAPER: Profigloss, Profimatt and Munken print white. 62 7cbhYbhg Group overview 4 2008 in brief 5 Owner’s message 6 CEO’s comments 8 Axel Johnson International 10 Axfood 18 Mekonomen 26 Novax 34 Servera 42 Svensk BevakningsTjänst 50 The Åhléns group 58 Axel Johnson AB, Board of Directors 66 Axel Johnson AB, Management Group 69 49 Meetings past and present 70 Our values 72 '$ Figures 2008 75 The Axel Johnson Group 82 kkk"UlY`^c\bgcb"gY3 aYYh;fcidcjYfj]Yk 5lY`>c\bgcb56 Flid`jj`fe`jHC6I=@85B889J9@CDYlj`e\jj\j n`k_`ekiX[\Xe[j\im`Z\j%?\i\`jXeflkc`e\f]k_\ ^iflgËjjkilZkli\1 AXEL JOHNSON AXFOOD MEKONOMEN (29 %) NOVAX INTERNATIONAL (approximately 46 %) Scandinavia’s leading car Develops and invests in Supplier of industrial and One of the largest listed parts chain, listed on the companies with growth consumer products in Europe. companies in the Nordic Stockholm Stock Exchange. potential. retail food market. Forankra Mekonomen Wholesale DesignTorget (100 %) AxFlow Hemköp Mekonomen Sweden Filippa K (56 %) AxIndustries Willys Mekonomen Norway Himla (33 %) AxImage Dagab Mekonomen Denmark WeSC (19 %) Axfood Närlivs Mekonomen Fleet PrisXtra SERVERA SVENSK THE ÅHLÉNS GROUP Leading wholesaler and BEVAKNINGSTJÄNST One of the Nordic region’s specialist in the restaurant Offers total security solutions for leading retail companies with and food service sector. companies and private individuals. department stores and specialty stores within Beauty, Homeware Servera R&S Security services and Fashion. RP Frukt Parking Grönsakshallen Sorunda Emergency call centers Åhléns Fällmans Kött Protection & Analysis Kicks Matsäljarna Väst Training Lagerhaus Bunkra.se myself & friends Servera Shipping Åhléns Norway FIGURES IN PARENTHESES INDICATE THE SHARE OF OWNERSHIP. 4 kkk"UlY`^c\bgcb"gY &$$,]bVf]YZ AXEL JOHNSON AB G5@9G 57EI=G=H=CBG During the year, the Axel Johnson group’s consolidated sales amount- A number of acquisitions were carried out during the year. Axel Johnson ed to SEK 19,881 million (19,557). Sales in partly owned Axfood and International acquired the British company Certex Lifting, the Danish com- Mekonomen amounted to SEK 31,663 million (29,189) and SEK 2,646 pany Peter Harbo, the Finnish company Porin Laakeri, and the Swedish million (2,530) respectively. companies Elektro-Dynamo AB, EN Components, and LVD Lastvagns- delar. The Åhléns group acquired the cosmetics chain Parfymeri Mitti, 95FB=B;G and Axfood acquired PrisXtra in January. Mekonomen signed an agree- Operating profit amounted to SEK 993 million (1,167). Profit after net ment with Micro AB on acquisition of eight Micro stores, and Servera financial items after impairments was SEK 909 million (1,314). Profit in strengthened its position in southern Sweden with the acquisition of RP the previous year included capital gains totaling SEK 164 million. Frukt. Svensk BevakningsTjänst extended its operations through the acquisition of Parkab during the year. :=B5B7=5@DCG=H=CB The Axel Johnson group’s financial position was further strengthened. Visible equity rose to SEK 5,894 million (5,573). At year-end, cash and cash equivalents amounted to SEK 2,569 million (2,058) and net cash amounted to SEK 1,514 million (1,634). Ai`h]!mYUfgiaaUfm Amounts in SEK million 2008 2007 2006 2005 2004 Net sales 19,881 19,557 18,467 13,820 9,115 Profit after net financial items 909 1,314 1,087 826 883 as % of net sales 4.6 6.7 5.9 6.0 9.7 Total assets 10,738 9,440 8,795 8,473 5,279 Capital employed 7,304 6,323 5,474 5,601 3,655 Return on capital employed (%) 14.2 23.0 20.4 18.9 26.7 Equity 5,894 5,573 4,721 4,461 3,517 Equity ratio (%) 55.7 60.0 54.4 52.8 66.7 Net debt/equity ratio (multiple) 0 0 0 0 0 Cash flow after investments 81 1,466 316 286 128 Average number of full-time employees 8,415 7,740 7,222 5,301 4,042 kkk"UlY`^c\bgcb"gY5 6 kkk"UlY`^c\bgcb"gY CkbYfÁgaYggU[Y K_\dfjkZilZ`Xcf]d\\k`e^j`eX]Xd`cpYlj`e\jj `jH<9A99H=B;K=H<H<9:IHIF9"K_\ Xjjldgk`fej#XkXjg\Z`ÔZgf`ek`ek`d\#f]n_Xk `jkfZfd\%K_\[\m\cfgd\ekf]\Zfefd`\j% :_Xe^\jf]k\Z_efcf^`\j%Ki\e[j%N_Xk`j_`[[\e Y\_`e[k_\fYm`flj% H\YaYYh]b[ he theme for this year’s annual review is the Meet- expected to grow by 2.7 percent in 2008 and 2.9 percent in 2009. Six T ing. In a trading company business will never be bet- months later predictions were that growth for 2008 would end up at ter or worse than the meeting – the meeting with 1.7 percent and 1.4 percent in 2009. Today the prediction is that suppliers, with customers, with colleagues, with the world of growth for 2008 will be 0.7 percent and in 2009 Sweden’s GDP is politics and society. expected to fall by almost 1.5 percent. Change has never been faster. In the meeting relationships are personal, intentions are And assumptions about the future never more wrong. scrutinized, driving forces and new ideas grow. Being a family Volatility, in the entangled global economies, where speculation business owner and merchant requires a deep understanding and psychology have gained a foothold, make more demands than of the opportunities of daily face-to-face meetings. It requires ever on acuity. In a family business the owners’ capital, name and rep- an open mind and an innate curiosity. utation are at risk. Flexibility, the ability to react quickly and an over- My grandfather, the businessman Axel Ax:son Johnson, riding willingness to change and constantly break new ground, once put it like this: “I plan for the future – I am not conservative. together with a good portion of skepticism towards the forecasters’ It is not in my nature. I want to constantly break new ground for the models and predictions, are sensible survival strategies. But also a enterprise.” long-term approach and “to stay one’s course.” This is our task. Even The family archives, in Engelsberg in Sweden’s Bergslagen if the current pace of turbulence is unique, it is not the first time we region, cover four generations of Johnsons’ business letters, have been surprised. About every ten years, an externally created eco- personal notes and diaries, which, time and time again, tell of nomic crisis has appeared. business meetings around the world and their significance in My lesson: Right now, at this very moment, the meeting with the the buildup of the trading group that is Axel Johnson AB future is happening. It is not the first time. Sweden’s Queen Christina today. wrote more than a thousand maxims during her time in Rome in the But the meeting also has another dimension. The meeting late 17th century. with time. The meeting with the past, with history, is usually more than ever important in a family company where the gen- The past is no more, the future is unknown erations face the challenge of inheritance. There are often and the present is as fleeting as the blink of an eye. secrets and hidden lessons in past events. Wise learnings and But it is this fateful moment that determines conclusions to be found. But the most crucial of meetings in a our future for better or for worse. family business is the meeting with the future. The assump- tions, at a specific point in time, of what is to come. The devel- You see! A message for us as owners and for all the people in the family opment of economies.