Managing “The New Normal”

ICA Gruppen Capital Markets Day, December 9, 2020

Per Strömberg CEO ICA Gruppen Anders Bärlund CSO ICA Gruppen A very different year..

Rapidly changing customer behaviour and preferences

Extreme online growth

Periodic strain on supply chain

Managing new ways of working

Supporting society… The “S” in ESG has been much in focus in 2020 – and we have been supporting society in many different ways

Supporting risk groups… … smaller businesses … and the society

• Cooperation with the Red Cross • Supporting local suppliers in • Many local initiatives by ICA to facilitate deliveries different ways to make it easier Retailers across for them to sell through our • Free pharmacy deliveries for 65+ stores in Sweden and the Baltics • “Energy” packs for health care staff (Rimi) • Rapid scale-up of last mile • Settling payables faster to delivery service ICA Pronto support smaller businesses • Food bank for people who lost prioritizing risk groups their jobs (Rimi) Our strategy remains on track – but some areas will need even more focus post COVID-19

In particular: • Online • Price value • Sustainability and Health

… have become even more important Shifts in ”the new normal”

Price value Online Sustainability/Health

Supply chain Ways of working Ambition 2025 ICA is for everyone. We serve all customer segments with relevant price-value and locally adapted offerings We have the leading everyday food ecosystem built around inspiring local marketplaces with supporting products, services and infrastructure We are recognized as one of the corporations doing the most to improve public health We are known as a trusted source of guidance to make relevant, healthy and sustainable choices WeWe are are industry industry leader leader inin progressing progressing towards towards a a climate climate netnet-zero-zero business business We are the most attractive and appreciated employer with the proudest employees We are known for entrepreneurship, modern ways of working, continuous learning and that together we make a difference We are a trusted data-driven company, with relevant and personal products and services, based on data that we use across the ICA-system, to the benefit of all stakeholders We are deeply data-driven in our daily work and we leverage data to develop our business Our updated step-change areas for the next 1-3 years

E-commerce and digital Strengthened food ecosystem transformation

Best in class grocery Mortgage growth Price, promotion & Urban strategy 2.0 e-commerce offer Online profitable growth assortment

Strengthen customer loyalty ICA Insurance profitable Expand convenience and Strategic and active and price value proposition growth Min Doktor success meal solutions portfolio management

Data driven transformation supported by AI/AA

Transformation to reduce cost and build new capabilities

Climate beyond neutrality

Make healthy choices easy ICA continues to be the #1 grocery brand in Europe

Top 10 strongest /Hypermarket store brands (SEI) in Europe 2020 (vs. previous year) Data updated 1 Sweden 4.7 (4.7) –

2 Switzerland 4.0 (4.3) ▼

3 Slovakia 3.9 (3.6) ▲

4 Portugal 3.9 (3.7) ▲

5 Spain 3.8 (3.3) ▲

6 Netherlands 3.8 (3.6) ▲

7 Portugal 3.7 (3.3) ▲ #1 Nice to shop at (>2x #2) 69% 8 Finland 3.4 (3.4) – #1 Makes it easy to shop when 64% 9 Slovakia 3.4 (3.3) ▲ and where I will (>2x #2) 10 Bulgaria 3.4 (3.3) ▲ #1 Has private label I like to buy (~2x #2) 63% Source: Nielsen SEI 2020 Source: ICA Brand Tracking Q3 2020 To summarize…

Strategy remains on track and brand position is strong

Enhanced focus on online, price-value, sustainability and health

We are aligned to continue delivering on our targets Strong performance and well positioned for “The New Normal”

ICA Gruppen Capital Markets Day, December 9, 2020

Anders E Svensson Deputy CEO ICA Gruppen & CEO ICA Sweden ICA stores are gaining market shares in recent months..

..and we continue to outperform Total sales.. market growth online 14% 250%

12% 200% 10%

150% 8%

6% 100%

4% 50% 2%

0% 0%

DVI Index ICA Total ICA LFL DVI online ICA Online

Source: DVI (Dagligvaruindex) by HUI, on behalf of The Swedish Food Retailers Federation …with significant volume growth driving earnings in 2020

Q3 EBIT growth ..and YTD

+8.7% +12.2%

3 237 1 208

1 111 2 885

2019 2020 2019 2020 Our main focus areas remain relevant, but COVID-19 has led to higher priority in certain areas

Sustainability E-commerce and health Price value Personalization Meal solutions Market leader online since 2017 – online demand surged in 2020…

+96% ICA online sales (MSEK) Online, share of total store sales 4,499 Year 2019 R12 Nov 2020

Regular online Meal kits 1.6% 3.4%

+33% 2,294 +42% 4 219 1,729 +50% • Reaches >85% of Swedish population +43% 1,221 2 026 • Share of sales through 813 1 465 dark store ~10% 568 975 614 415 • Home delivery share ~35% 153 199 246 264 268 280 R12 Nov 2015 2016 2017 2018 2019 2020 …with more and more ICA retailers offering online

66 new stores have gone online in 2020 – 360 in total

Online sales share for participating stores were 6.3% YTD Q3

>70 stores using the dark store in Stockholm Our partnership with Ocado is a key driver for long-term online profitability

World leading ONLINE platform Automation in central fullfillment (CFC)

• AI-supported shopping journey to drive basket • Automation in CFC leads to an increased size and margin improvement efficiency • Platform realizes a wider assortment in CFC • Targeting at least a doubling of picking • Better and more reliable manual pick productivity compared to the dark store • Partnership with world leading retailers • Ocado is investing heavily in further automation and AI-supported process execution in the CFC Important online milestones up to 2022…

June December Spring November Spring Limited B2C MVP B2B Dark store Tests start in Volume ramp-up Gothenburg starts Stockholm CFC in CFC begins on OSP as an MVP

2020 2021 2022

September November February Summer December Public MVP Ocado starts First store has Conversion of All stores B2C the installation converted to OSP Dark store in converted to in the CFC Roll-out starts Stockholm to OSP OSP

MVP=Minimum Viable Product. OSP=Ocado Smart Platform ..with some temporary and limited financial effects

Operations Rapid corona-driven volume increase in 2020 ICA online 2.0 first store pilot in September 2020 Financials Volume driven higher cost level in dark store Project driven higher costs when moving into implementation phase

Operations Migration of stores to MVP OSP starts Dark store in Gothenburg opens and dark store Stockholm converted to OSP 2021 End of year all stores are converted, and CFC testing starts Financials Project implementation and OSP conversion costs Estimated margin effect vs 2020 (all things equal), approx. -0.1pp

Operations Adding functionality to OSP Commissioning of Ocado CFC in Stockholm 2022 Financials Warehouse commissioning costs Estimated margin effect vs 2021 (all things equal), <-0.1pp

MVP=Minimum Viable Product. OSP=Ocado Smart Platform Price value will become even more important We will use a variety of tools do drive price value…

1 Investments in key 2 Campaigns and 3 Strategic work products with high communication with assortment price sensitivity

4 Sales support to 5 Strong private 6 Loyalty program the ICA stores label offer key to personalize price value

28 ICA’s private label: five growth platforms to build customer loyalty LONG-TERM FOCUS

Increased price value Ambition Customer’s preferred choice

Strengthened private label brand

Increased sales, differentiation and Objective Assortment development strengthened loyalty at the forefront

Proud and engaged store employees Growth For A Good For A Good For inspiring For a For Tomorrow – Tomorrow – dining simpler affordable platforms Sustainability Health experience life choices Secure a good private label margin Accelerated private label growth 2020

pp 1,4

1,2

1,0

0,8

27,0% 0,6 26,5% 25,8% 25,3% 25,2% 0,4 24,6% 24,6% 23,9% 23,8% 23,1% 0,2

0,0 2016 2017 2018 2019 2020 Food Food & Non-food Growth food Growth F&NF Well positioned for “The New Normal”

Strong performance in a turbulent market with big and escalating shifts in customer behavior

Investing in online and transitioning to the new Ocado platform

Ensuring customer loyalty and price value in uncertain times Increasing benefits from digital acceleration

ICA Gruppen Capital Markets Day, December 9, 2020

Jan Prokopec CDO ICA Gruppen Strong contribution from our four prioritised digital focus areas

Food Personalized Advanced Process Ecosystem & Digital Analytics & AI Automation (Digital/e-commerce Marketing FOCUS AREAS FOCUS and omnichannel)

Innovation and new technology

New capabilities and ways of working ENABLERS Data accessibility and quality Reaching Process Automation targets for 2020 – 100 MSEK

New target for 2023: 200 MSEK yearly run-rate in EBIT contribution Moving into industrial scale within Advanced Analytics & AI

Number of use cases during 2020 25

20 In 2020 we have gone 15 from single pilots per 10 business area to industrial scale 5 roll-outs

0 Q1 Q2 Q3 Q4

ICA Sweden Apotek Hjärtat ICA Bank Innovation hub ICAx continues to strengthen our ecosystem and operations across the Group

Express food deliveries Unmanned store makes Analytics powered tools to customers 24/7 opening hours possible do reduce shrink in store Increasing our sustainability ambitions

ICA Gruppen Capital Markets Day, December 9, 2020 Kerstin Lindvall Chief Corporate Responsibility Officer ICA Gruppen Sustainability part of ambition 2025 and step changes

Ambition 2025

Step changes 1-3 years Climate beyond neutrality

Make healthy choices easy Customers’ sustainability agenda is wide, but with growing attention to climate, local and health

Reduce carbon footprint

Eat more local food

Reduce food waste

Use plastic more sustainably

Increase mental and physical well-being 2020 is the year ICA becomes climate neutral

> 70 % < 30 % Our new climate ambition from 2021 covers all parts of the value chain

70% OF SALES NET-ZERO HALVED FROM SUPPLIERS 2030 IMPACT IN WITH CLIMATE 2030 GOALS

Primary production and Suppliers Warehouses, Stores and Offices Customers Halved customers’ climate footprint by 2030

New approach where we clearly take responsibility not only for our own business, but also our customers' carbon footprint – where the major climate impact takes place in the value An ambition in line chain. with the Paris An ambition to halve customers' climate footprint Agreement, research sits in line with the Paris Agreement and the and a healthy diet recommendations of research.

Goes hand in hand with a healthy diet – eating climate smart is almost always healthy. The journey toward halved footprint has already started, but speed and effort will need to increase

Invest in national Reduce the We are already and locally produced climate impact of doing a lot that existing range contributes! Guide customers to sustainable choices Continue work on our plastic strategy Develop and offer more sustainable products; Drive efforts for innovation of new protein reduced food sources and circular waste thinking

No assortment … but a large movement from red proteins to white, needs to be green, gray and blue is required. "zeroed out”… Our Health Strategy 2025 – increased relevance in the light of COVID-19

Our health ambition Our ambition areas 2025 Our definition of health We want to make it MENTAL WELL-BEING easier for our Good health is a state of customers to live physical, mental and social healthy based on well-being for people of all their opportunities PHYSICAL WELL-BEING ages and with different and conditions, in conditions in life. order to reach their full potential. SUSTAINABLE ANTIBIOTIC USE To summarize

Sustainability remains of great importance to our customers

Sustainability is high up on ICA Gruppen’s strategic agenda

Our ambitions in climate and health have been strengthened – we are frontrunners and will deliver on expectations and create business value Strengthening our #1 position and increasing online sales

ICA Gruppen Capital Markets Day, December 9, 2020

Anders Nyberg CEO Apotek Hjärtat The corona pandemic has had a large impact on our industry

Prescription sales growth per month (volume) 20.9%

4.7% 3.1% 2.6% 2.4% 2.3% 3.0%

-0.6% -0.1% -1.4% -1.2% -4.4% -5.4% -7.2% S O N D J F M A M J J A S O We are now #1 in the market and our online sales are up 130%

Market share, Oct 2020 Growth online, Q3 2020

31 30 +77%

+130%

17

9 8 +53% 3 2

Apotek Apoteket Kronans Apoteks- Apotea Lloyds Others Hjärtat AB Apotek gruppen apotek Market Apotek Hjärtat Our integrated offering is even more attractive to customers…

Online Physical pharmacies Strong brand …enabling express home deliveries though our physical pharmacies

1

2 2 hours

Order 3

Fulfilment

Delivery …making every day easier for our customers by offering co-delivery of groceries and pharmacy products We have the strongest brand and will now invest to make it a destination for online

52 …and the app brings the pharmacy to your pocket!

Availability online Manage Bli påmind om recept Finns dina läkemedel Reminders and in pharmacies Shop in app prescriptions som håller på att gå ut i lager? nearby Improving dark store and warehouse efficiency through automation Automated packing in dark store Warehouse automation Our pharmacies continue to outperform the competition

Self-care sales per pharmacy (MSEK) Prescription volume per pharmacy 9.5 9.3 9.4 75 72 72 70 9.0 8.7 69 Apotek Hjärtat 70 8.4 67 Apotek Hjärtat 65 66 7.9 8.1 8.0 60 Competitors 7.0 Competitors

6.0 50

5.0 40

0.0 0 2014 2015 2016 2017 2018 2019 R12 2014 2015 2016 2017 2018 2019 R12 Sep Sep 2020 2020

Statistics from Sveriges Apoteksförening Min Doktor is a competitive advantage for our customer offering and strengthens our market position Maintaining our #1 position

Market leader with e-commerce growing faster than market

Strong focus on expanding e-commerce, leveraging our pharmacies, Min Doktor and ICA

Largest pharmacy network with attractive locations Rimi Baltic

– Strengthening and growing the Rimi brand

ICA Gruppen Capital Markets Day, December 9, 2020 Edgar Sesemann, CEO Rimi Baltic Our warehouse in Riga operational – enabler for cost efficiency across the Baltics

. Main distribution point for all Baltic countries and all product groups (84,000m2)

. Operations from four temporary locations brought under one roof has started

. Innovative, environmental-friendly and ergonomic solutions, which increase employee productivity

. Space for online dark store available

. Automatization and central production during spring 2021 Adjusting and responding to new customer behaviour due to COVID-19

Customer habits . Online gains significant share

Price will become even more important . All players prepare for new competition in Estonia and Latvia

Need to reduce cost level to maintain profitability . Focus on sourcing costs and individual store cost monitoring Recovery will take time . Shopping centres comeback gradual. Tourist & border trade longer time to recover Our online offering has been well received and is steadily growing in all three markets

Sales growth will continue to be our . We have now established online in all three first priority in 2021 countries . Geographical coverage ‒ Latvia October 2019 . Focus on home delivery and Rimi Drive ‒ Lithuania March 2020 . New features to increase ‒ Estonia May 2020 competitiveness . Rimi Baltic online sales share is already above 2% . Marketing and promotions and continues to grow . Operational excellence . Free delivery subscription pass was launched in Q3 We are well prepared for new competition in early 2021

Rimi’s objective is to lose less than fair share, by improving on all fronts

Pricing and Marketing and Assortment Stores People promotions Communication

. Regular price index . Relaunch EDLP . New store design . New brand platform . Retention . New F&V concept and for all formats “Everyday a little strategy for store promotion concept assortment . One brand better” staff “Fresh 5” . Visibility of strategy . Share of voice . Employer promo and EDLP . CR and branding . Competence sustainability categories and local Customers continue to be very satisfied with Rimi – main drivers for improved CSI are better price perception and assortment RIMI BALTIC

ESTONIA LATVIA LITHUANIA CSI

CSI CSI CSI 75.8 72.8 75.6 79.2 (+1.5) (+1.5) (+2.5) (+0.5)

GAP 1.4 (+0.8) GAP 6.1 (+1.1) GAP +3.3 (+0.3) GAP 3.9 (+0.7) Rimi Baltic improves customer satisfaction (CSI) and gap to local competitors in all markets

The 2020 analysis is based on 49 552 responses. Last year’s results have been weighted to reflect the 2020 data collection mix. CSI = Customer Satisfaction Index, GAP = Difference in satisfaction between the Rimi Store and local competition. () Numbers within brackets shows development from 2019 Creating value and enabling ICA to grow

ICA Gruppen Capital Markets Day, December 9, 2020 Anna Nyberg CEO ICA Real Estate Continued good valuation trend in our portfolio

Market value 2019 Market value 2020

5% 4% 6% 5%

• Lowering yields 15% 17% • Acquisition SEK SEK of logistic assets 1% 21.3 bn 23.9 bn 56% 1% • Land/Property 5% 60% Banking 13% 6% 6%

ICA-store LPB-property Warehouse/logistics ICA-store LPB-property Warehouse/logistics Other (not ICA-store) Ancore (JV 50%) Secore (JV 50%) Other (not ICA-store) Ancore (JV 50%) Secore (JV 50%) Långeberga (JV 50%) Långeberga (JV 50%) Logistics will continue to be a major driver of Real Estate investments 4 000 2020 Average net Net 3 000 investment investments • Acquisition of Hacksta warehouse 1 BnSEK 2 000 Divestments • Other acquisitions include dark store Gothenburg 300 MSEK* and 1 000 ICA Maxi Bålsta 190 MSEK • Investments in CFC Brunna 400 MSEK 0 • Investments in Viby warehouse 80 MSEK

-1 000 2021 -2 000 Investments • Investments in CFC Brunna 200 MSEK -3 000 • Investments in cold storage warehouse in Hacksta 200 MSEK -4 000 • Acquisition Land Property Banking 2015 2016 2017 2018 2019 2020 2021 250 MSEK MSEK Guidance

* Not included in market value in previous slides. Possession after validation date. Investing to strengthen online and logistics

Stockholm (Brunna, online) Gothenburg (Arendal, manually) • Operational 2022 • ICA took over the property on • Size 32,000 sqm, including office building October 26, 2020 and operations • Total real estate capex 2018-2022 estimated planned to start in March 2021 at SEK ~1 billion • Size 17,200 sqm​ • BREEAM Excellent • BREEAM Outstanding

Stockholm (Viby) • New ICA Logistics site in Stockholm • Operational summer 2020 • Size 7,500 sqm​ • Sweden Green Building council, silver Secure new store locations and minimize risk through collaborations

Developing multiuse properties together with housing developers in collaborations or joint ventures

Developing multiuse properties including rental apartments for selling to long-term property owners

Selling projects with an ICA-store lease Securing premium locations for ICA

ONGOING PROJECTS

Lillsidan, Enköping Limhamn, Malmö Lindvallen, Sälen Securing premium locations for ICA

PLANNED PROJECTS

Brunnshög, Lund Årsta, Stockholm Södra Häggvik Sollentuna Arninge, Täby Creating value and enabling ICA to grow

• We continue to deliver a stable result and increase value in our real estate portfolio

• We improve online cost efficiency by investing in logistics

• We secure new store locations and create value through our urban strategy Continued investments in online and digital – Long-term financial targets maintained

ICA Gruppen Capital Markets Day, 9 December, 2020 Sven Lindskog CFO ICA Gruppen Margins and growth remain strong vs peers

Peer group comparison 2015-2019, EBIT % Average sales growth in same period: ICA +3.9% vs Peer Group +3.4%

Going forward: • Improving online capacity, offering and profitability – Online projects in ICA Sweden will have limited and temporary effect on group 4,3 margin, approx. -0.1pp in 2021 and <-0.1pp 3,1 in 2022 • Develop store format & network • Continue to push digital agenda

ICA Gruppen* Peer Group, average** • Leverage growth and improvement projects

* Does not include ICA store margin ** Axfood, Kesko, NorgesGruppen, Delhaize, Colruyt, , Casino, Sainsbury’s, We maintain our long-term financial targets

R12 Long term Average Target (30/9 2020) targets last 3 yrs Sweden Grow faster than the market Baltics All markets Pharmacy Operating profit excl. items 4.6 4.5 4.3 affecting comparability,% ROCE1,% 9.1 7.5 8.2 Net Debt/EBITDA2 2.0x <3.0x 2.0x Dividend (% of net results 2019) 70 At least 50 62

1. Excluding ICA Bank, 2018-R12 Q3 2020 2. Net debt excludes pension debt and ICA Bank, 2018-R12 Q3 2020 Warehouse acquisition brings 2020 capex to all time high, but lower level in 2021…

6 000

~5,000 5 000

4 000 ~3,500 3,080 2,000 3 000 Retail Guidance 2 000 Retail & 2,000 Bank 1 000 3,000 1,500 Real Estate Real Guidance Estate 0 Capex 2015 2016 2017 2018 2019 2020 2021 MSEK Actual Guidance

Real Estate = ICA Real Estate (Sweden) ..while online investments remain on same level and store network increasing

6 000 • IT, online & digital remain on ~5,000 same level, ~900 MSEK 5 000 • Store network; ICA Sweden, Rimi Baltic, +300 MSEK 4 000 ~3,500 • Rimi B; new DC commissioned 3,080 in 2020, -300 MSEK 3 000 IT, online & digital • ICA Real Estate -1,500 MSEK Store network/logistics 2 000 Rimi B real estate incl. new DC In addition: 1 000 Real estate Sweden • Capital injection in new mortgage business estimated 0 at 300 MSEK (not in graph) Capex 2019 2020 2021 MSEK Guidance ICA Sweden – commissioning online projects, price value Rimi Baltic – meeting new competition

MARKET, uncertainty high due to COVID-19 FOCUS AREAS

• Grow faster than the market, maintain margins long-term • Execute and commission Online 2.0 by 2022 ICA Estimated market growth in • Strengthen customer loyalty/price value proposition 2021: 0.5% (price 1.5) Sweden • Meal solutions/health strategy • Organizational efficiency, digital transformation

Estimated market growth in • Grow faster than the market, long-term stable margins 2021: • Manage new competition Rimi • Estonia: 3% (price 0) • Online offering/convenience/meal solutions Baltic • Latvia: 3% (price 2) • Strengthen store network – especially in Lithuania • Lithuania: 5% (price 2) • Leverage new DC in Riga Apotek Hjärtat – online growth and network optimization Real Estate – portfolio management, securing value creation

MARKET, uncertainty high due to COVID-19 FOCUS AREAS

Estimated market growth in • Grow faster than the market, improve margins 2020 4-5% (price<1) • Online/omni-channel/last mile Apotek • OTC: 4% (price -0.5%) • Leverage investment in Min Doktor Hjärtat • Traded goods: 8% • Leverage investment in new automated warehouse and (price 2%) optimize store network

• Market value for grocery assets still • Continued active management of the property portfolio stable due to stable cash-flows • Deliver on urban strategy 2.0 Real Estate • High demand for modern and well- • Efficiency in property management located logistic facilities, especially when close to urban areas • Increased focus on sustainability and digitalisation ICA Bank – launching a mortgage company Group – costs on same level in 2021

MARKET, uncertainty high due to COVID-19 FOCUS AREAS

ICA • Repo rate 0% • Launch new mortgage company • Intense bank competition • Broaden existing customer relationship/omni-channel Bank & • Insurance market growing at • Profitable growth of insurance business Insurance steady pace ~3% • Scale-up use of digital tools – AI/Advanced analytics

Group Central functions incl. ICAx • Group costs in 2021 ~450 MSEK Continued investments in online and digital

Temporary and limited impact on margins

Long-term financial targets maintained Disclaimer

This presentation contains forward-looking statements that reflect management’s current views with respect to certain future events and potential financial performance. Although ICA Gruppen AB (publ) believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of various factors.

Important factors that may cause such a difference for ICA Gruppen AB (publ) include but are not limited to: (i) the macroeconomic development, (ii) change in the competitive climate, (iii) change in the regulatory environment and other government actions and (iv) change in interest rate and foreign exchange rate levels.

This presentation does not imply that ICA Gruppen AB (publ) has undertaken to revise these forward-looking statements, beyond what is required by applicable law or applicable stock exchange regulations if and when circumstances arise that will lead to changes compared to the date when these statements were provided.