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

Interim report January – June 2009

Claes-Göran Sylvén, President and CEO

Forecast private consumption 2009

• 30,0%
• 25,0%
• 20,0%
• 15,0%
• 10,0%
• 5,0%

0,0% 5,0% 10,0% 15,0%

2009

Source: Nordea, Forecast May/June 09

Estonia Latvia Lithuania Sweden Norway

• 18 %
• 24 %
• 18 %
• 1,6 %

+0,9 %

Business environment and market

• Slightly greater optimism
• Tough economic situation in Baltic

countries

• Retail trade showed positive

growth in second quarter

• Cost savings and focus on price
• Consistent action and clear

customer offering a strength

• Financially strong owner provides

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 Portfolio companies

Forma Publishing Group, 100% Kjell & Company, 50% Hemma, 89% Cervera, 81%

ICA AB, 40%*

inkClub, 50%

* Remaining 60% is owned by the Dutch company Royal Ahold. According to a shareholder agreement both

• wners have joint control of ICA AB, through an agreed

requirement for unanimity at Annual General Meetings and in the Board of Directors.

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
• perations, 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 stores Comparable stores +6.6 % +1.6 %

• 10.2 %

+5.9 % +1.8 %

• 14.9 %

Sales Sales All stores Comparable stores ICA Sweden SEK 23,180 M NOK 5,071 M EUR 302 M +5.4 % +4.6 % ICA Norway SEK 44,166 M NOK 9,940 M +2.5 % +2.4 % Rimi Baltic EUR 599 M

• 5.9 %
• 10.8 %

ICA Group Apr. 1 – Jun. 30, 2009

Operating profit SEK M

• Apr. –
• Jun. 2009

Change SEK M Jan .– Jun. 2009 Change SEK M ICA Sweden 567

• 215
• 60

37 284

• 31

582 945 +290 ICA Norway +209

• 129
• 126

+12

• 69
• 515
• 213

Rimi Baltic +25

• 103
• 175

ICA Bank 75 +29 ICA Real Estate 518

• 71
• 78

ICA Group Functions

• 72

+69 Total 848

• 71
• 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)

ICA Group’s operating margin, %

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 Quarter 1 Quarter 2 Quarter 3 Quarter 4

2005 2006 2007 2008 2009

Portfolio companies

Results Q2 H1 Focus 2009 Q2 2009

Revenues SEK 103 M (89) EBIT SEK 11 M (12)

• Stock efficiency
• Launch of new categories
• Growth with profitability
• Stable growth in all product areas
• Currency effects have negative impact on

gross margin

• Good control of costs

Revenues SEK 85 M (72) EBIT SEK -9 M (-9)

• New concept in all stores
• Store efficiency
• New website
• Strong sales trend
• 2 new stores, Norrköping and Falkenberg
• Acquisition of 27 Duka stores and NK Glas,

Porslin & Kök completed

Revenues SEK 58 M (78) EBIT SEK -1 M (-21)

• Sales promoting activities
• Store efficiency
• Online sales
• Weak margin
• Stronger gross margin
• Strong improvement in profitability

Revenues SEK 110 M (90) EBIT SEK -6 M (-6)

• Profitable store expansion
• Campaign management
• Stock efficiency
• Two new stores, Strömstad and Luleå
• Continued growth in comparable stores
• Increased store efficiency but also increase

in central costs

Revenues SEK 216 M (223) EBIT SEK -2 M (11)

• Cost-cutting
• Restoring profitability in Finland
• Kattis and other new projects
• Continued weak advertising market
• Launch of Kattis charged against earnings
• Restructuring program completed

Holding 100% Holding 89% Holding 50% Holding 81% Holding 50% Revenues SEK 410 M (431) EBIT SEK -46 M (-7) Revenues SEK 237 M (186) EBIT SEK 1 M (-6) Revenues SEK 117 M (153) EBIT SEK -4 M (-27) Revenues SEK 143 M (142) EBIT SEK -25 M (-20) Revenues SEK 225 M (197) EBIT SEK 26 M (21)

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 for maneuver and contributes to a long-term approach Hakon Invest’s financial position remains strong which creates room for maneuver and contributes to a long-term approach

Financial information

Income statement

MSEK 2 Q 2009 2 Q 2008 Jan.-Jun. 2009 Jan.-Jun. 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

• 100
• 50

50 100 150 200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Quarter

• 200
• 100

100 200 300 400

Rolling 4 quarters Quarter Rolling 4 quarters

SEK M SEK M 2005 2006 2007 2008

Investment management per quarter and rolling 4 quarters 2005 – 2009

Breakdown of funds for future investments

Parent Company, June 30, 2009

Hedge funds 38 % (24) Fixed-income 26 % (49) Equities 30 % (17) Cash and cash equivalents 6 % (10)

Total value at June 30, 2009: SEK 962 M (Total value at Dec. 31, 2008: SEK 1,465 M) SEK M

Balance sheet

SEK M

• Jun. 30

2009

• Dec. 31,

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

• 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%)

Share price development

Share price development so far in 2009 cf. OMXS index Hakon Invest is quoted in the Large Cap Segmentet on Nasdaq OMX Stockholm.

Hakon Invest

• 10,6%

OMXS Index +31,9%