Interim report January June 2009 Business environment and market - PowerPoint PPT Presentation

Claes-Göran Sylvén, President and CEO Interim report January – June 2009

Business environment and market • Slightly greater optimism Forecast private consumption 2009 • Tough economic situation in Baltic 15,0% countries Lithuania Sweden Norway 10,0% Estonia Latvia • Retail trade showed positive 5,0% 0,0% growth in second quarter +0,9 % 2009 -1,6 % -5,0% • Cost savings and focus on price -10,0% -15,0% • Consistent action and clear -20,0% -18 % -18 % customer offering a strength -25,0% -24 % -30,0% • Financially strong owner provides Source: Nordea, Forecast May/June 09 security and creates opportunities

Hakon Invest, Apr.1 – Jun. 30, 2009 Stable development and confidence for work under way in the holdings • Revenues totaled SEK 359 M (301) • Operating profit decreased to SEK 104 M (191) • Net financial items amounted to SEK 192 M (-71), of which change in value in Hemtex accounts for SEK 140 M and result from investment management for SEK 57 M • Profit for the period amounted to SEK 300 M (118)

Operations Hakon Invest ICA AB, 40%* Portfolio companies Forma Publishing Group, 100% Kjell & Company, 50% Hemma, 89% * Remaining 60% is owned by the Dutch company Royal Ahold. According to a shareholder agreement both Cervera, 81% owners have joint control of ICA AB, through an agreed requirement for unanimity at Annual General Meetings and in the Board of Directors. inkClub, 50% Hemtex, 68.5%

ICA AB • Positive sales and earnings in ICA Sweden • Change program in ICA Norway proceeding as planned and has highest priority • Rimi Baltic successfully adapted its operations, tough challenges lie ahead • ICA Bank is growing with profitability • ICA Real Estate stable development • Focus on price and sales activities as well as cost-cutting

Sales trend for ICA stores Apr-Jun 2009 Jan-Jun 2009 All Comparable All Comparable Sales Sales stores stores stores stores ICA Sweden SEK 23,180 M +6.6 % +5.9 % SEK 44,166 M +5.4 % +4.6 % ICA Norway NOK 5,071 M +1.6 % +1.8 % NOK 9,940 M +2.5 % +2.4 % Rimi Baltic EUR 302 M -10.2 % -14.9 % EUR 599 M -5.9 % -10.8 %

ICA Group Apr. 1 – Jun. 30, 2009 • Net sales SEK 24,037 M (+5.6 %) • Operating profit SEK 582 M (660) – of which capital gains and property impairments SEK 2 M (137) • Operating margin 2.4 % (2.9) • Profit for the period SEK 360 M (557) Jan .– Operating profit Apr. – Change Change Jun. SEK M Jun. 2009 SEK M SEK M 2009 ICA Sweden 567 +209 945 +290 ICA Norway -215 -129 -515 -213 Rimi Baltic -60 -126 -103 -175 ICA Bank 37 +12 75 +29 ICA Real Estate 284 -69 518 -71 ICA Group Functions -31 +25 -72 +69 Total 582 -78 848 -71

ICA Group’s operating margin, % 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Quarter 1 Quarter 2 Quarter 3 Quarter 4 2005 2006 2007 2008 2009

Portfolio companies Results Q2 2009 Focus 2009 Q2 H1 Revenues Revenues • Continued weak advertising market • Cost-cutting SEK 216 M (223) SEK 410 M (431) • Launch of Kattis charged against earnings • Restoring profitability in Finland EBIT EBIT SEK -2 M (11) • Restructuring program completed • Kattis and other new projects SEK -46 M (-7) Holding 100% Revenues Revenues •Two new stores, Strömstad and Luleå • Profitable store expansion SEK 237 M (186) SEK 110 M (90) • Continued growth in comparable stores • Campaign management EBIT EBIT • Increased store efficiency but also increase • Stock efficiency SEK 1 M (-6) SEK -6 M (-6) in central costs Holding 50% Revenues Revenues • Weak margin • Sales promoting activities SEK 58 M (78) SEK 117 M (153) • Stronger gross margin • Store efficiency EBIT EBIT • Strong improvement in profitability • Online sales SEK -1 M (-21) SEK -4 M (-27) Holding 89% Revenues Revenues • Strong sales trend • New concept in all stores SEK 85 M (72) SEK 143 M (142) • 2 new stores, Norrköping and Falkenberg • Store efficiency EBIT EBIT • Acquisition of 27 Duka stores and NK Glas, • New website SEK -9 M (-9) SEK -25 M (-20) Holding 81% Porslin & Kök completed Revenues Revenues • Stable growth in all product areas •Stock efficiency SEK 103 M (89) SEK 225 M (197) • Currency effects have negative impact on • Launch of new categories EBIT EBIT gross margin • Growth with profitability SEK 11 M (12) SEK 26 M (21) Holding 50% •Good control of costs

Hemtex Mandatory offer completed • Significant influence in Hemtex after completed mandatory offer - SEK 27 per share cash - extended acceptance period expired July 6, 2009 • Controls 68.5% of shares and votes at August 18 • Total investment in Hemtex amounts to SEK 923 M • Interim report and annual general meeting on September 2, 2009

Forecast • Lighter note during late spring but major challenges remain + Record low interest has created increased scope for consumption + Stabilization in housing market - Many layoffs have not yet had an effect - Uncertain situation for global economy - Weak krona makes imports expensive • Difficult economic situation in the Baltic countries • Focus on continued expansion in most of our holdings Hakon Invest’s financial position remains strong which creates room Hakon Invest’s financial position remains strong which creates room for maneuver and contributes to a long-term approach for maneuver and contributes to a long-term approach

Financial information

Income statement 2 Q 2 Q Jan.-Jun. Jan.-Jun. MSEK 2009 2008 2009 2008 Revenues 359 301 670 584 Cost of goods sold -219 -202 -430 -383 Gross profit 140 99 240 201 Other operating income 13 4 23 8 Selling and administrative expenses -178 -126 -363 -269 Share of profits in joint ventures 129 214 172 281 Operating profit 104 191 72 221 Net financial items 192 -71 189 -133 Profit after financial items 296 120 261 88 Income tax 4 -2 21 3 Profit for the period 300 118 282 91 Earnings per share 1.88 0.79 1.78 0.64

Investment management per quarter and rolling 4 quarters 2005 – 2009 SEK M SEK M 200 400 150 300 100 200 Rolling 4 quarters Quarter 50 100 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2008 2005 2006 2007 -50 -100 -100 -200 Quarter Rolling 4 quarters

Breakdown of funds for future investments Parent Company, June 30, 2009 Cash and cash equivalents 6 % (10) Equities 30 % (17) Hedge funds 38 % (24) Fixed-income 26 % (49) SEK M Total value at June 30, 2009: SEK 962 M (Total value at Dec. 31, 2008: SEK 1,465 M)

Balance sheet • Non-current financial liabilities SEK 155 M (SEK 39 M) • Cash and cash equivalents and short-term investments amounted to SEK 1,048 M (1,495) • Equity/assets ratio: 89.3% (94.9%) Jun. 30 Dec. 31, SEK M 2009 2008 Non-current assets 9,081 8,068 Current assets 2,016 1,953 Total assets 11,097 10,021 Equity 9,915 9,515 Non-current liabilities 313 191 Current liabilities 869 315 Total equity and liabilities 11,097 10,021

Share price development Share price development so far in 2009 cf. OMXS index OMXS Index +31,9% Hakon Invest -10,6% Hakon Invest is quoted in the Large Cap Segmentet on Nasdaq OMX Stockholm.