Capturing the convenience opportunity Capital Markets Day 15 December 2016
Anders Svensson CEO ICA Sweden, Deputy CEO ICA Gruppen Film ICA Sveavägen
15/12/2016 ICA Gruppen CMD 2016 2 A market in transformation with more choices for customers and potential opportunities for ICA
DISCOUNT DIGITALISATION MEAL SOLUTIONS
15/12/2016 ICA Gruppen CMD 2016 3 Continuing strong sales and stable margins
Net sales EBIT & margin1)
CAGR 3 366 3 479 +3.4% 3 228 73 850 3 090 72 624 2 929 69 248 4,7% 4,7% 4,6% 4,7% 66 428 4,5% 64 464
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 MSEK Q3 R12 MSEK Q3 R12
1)EBIT & margin excluding non-recurring items
15/12/2016 ICA Gruppen CMD 2016 4 Wholesale drives EBIT, but store sales & profits are important (royalty and profit sharing)
Net sales* EBIT* 7% 26% 17%
76% 74%
Wholesale Store Subs and Maxi Special Other sales Wholesale ICA Agreements & other, net Business model gives ICA Sweden the incentive to promote sales and earnings in stores *Q3 16 R12
15/12/2016 ICA Gruppen CMD 2016 5 Our brand is a key asset
1 Ikea 2 Volvo 3 ICA
Lynxeye 2016, Sweden’s most purposeful brands
15/12/2016 ICA Gruppen CMD 2016 6 100 years of independent retailers in cooperation
15/12/2016 ICA Gruppen CMD 2016 7 ICA Sweden and store margins develop in parallel
4,00% Note: Does not include store subsidiaries 3,50%
3,00%
2,50%
2,00%
1,50%
1,00% Note: % of store sales. Not ICA Sweden’s reported 0,50% EBIT margin, which was 4.7% Q3 16 R12
0,00% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Retailer owned ICA stores EBIT % ICA Sweden EBIT as % of store sales
15/12/2016 ICA Gruppen CMD 2016 8 ICA store sales improving vs. market in 2016
6,0 • Like for like sales growth strong
5,0 • Market share gains in Q3
4,0 • Food inflation much lower than last year 3,0
2,0
1,0
0,0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016
Retail Sales Index ICA ICA, LFL Food price inflation
Source: ICA and HUI Research AB (owned by The Swedish Trade Federation)
15/12/2016 ICA Gruppen CMD 2016 9 High number of store openings in H2 2016
• In total 17 openings, of which 11 in H2 2016 • 10-15 planned openings in 2017 • Renewals >250 in 2016
15/12/2016 ICA Gruppen CMD 2016 10 We make every day a little easier
15/12/2016 ICA Gruppen CMD 2016 11 Digitalisation@ica – solutions simplifying every day life
Online sales grew 46 % in Q3 2016 compared with Q3 2015
15/12/2016 ICA Gruppen CMD 2016 12 Meal solutions@ica – meeting the strong convenience trend
Dinner boxes and Store-baked pizza “Sushi Daily” breakfast bags
15/12/2016 ICA Gruppen CMD 2016 13 Value for money@ica – attractive price points across product range
15/12/2016 ICA Gruppen CMD 2016 14 ICA private label gives our customers innovative products and attractive prices
15/12/2016 ICA Gruppen CMD 2016 15 Capturing the convenience opportunity – by making every day a little easier
15/12/2016 ICA Gruppen CMD 2016 16