Q4 strong sales development and investments for
continued growth • Net sales increased by 6.2%
• In local currency +5.6%
• Increased sales in ICA Sweden and Rimi Baltic
• EBIT excluding non-recurring items +2%
• Large strategic investments for continued growth
• Acquisition of Apotek Hjärtat finalized • Integration according to plan
• Norwegian divestment ongoing
• Permission from the Swedish FSA to conduct
insurance business • Preparations continues to launch P&C** insurance by the
end of the year
• The Board proposes a dividend of 9.50 SEK
2
MSEK Q4 YTD
2014 2013 2014 2013*
Net Sales 23,180 21,820 87,174 82,993
EBIT excl. non-recurring items 1,081 1,058 3,937 3,695
EBIT 1,065 753 4,097 3,482
Profit for the period 879 531 2,667 1,424
EBIT margin excl. non-recurring items 4.7% 4.8% 4.5% 4.5%
EBIT margin 4.6% 3.5% 4.7% 4.2%
Earnings per ordinary share, SEK 4.09 2.49 12.53 7.18
*2013 proforma
** Property & Casualty
The market in Sweden
• Repo rate still at zero – Riksbanken maintained the rate in
December
• Food inflation rate* higher in Q4: +1.3%, 0.6% FY 2014
• Total retail market showed strong development in 2014;
+3.8% in fixed prices. Growth for food retail was +1.5% in
fixed prices
3
*DHI
Segments during the quarter
ICA Sweden
• Store sales growth outperformed market • Increased market shares in Q4
• Investing for future growth • New stores, Cura pharmacies and Online
• Strategic priorities better than plan: • PL share increased to 22.7% (21.5)
• 14 new ICA stores established in 2014 • No of pharmacies 67 (58) end of Q4
4
Online update
• Successful launch in November • 4 stores in Östergötland, off to a good start
• Online platform works well
• Extended test in Q1 - more stores in Östergötland
• Further launches starting in Q2 • New regions
• Technical upgrade of IT-platform
• ICA Online is well received by customers and retailers
5
Segments during the quarter (cont’d)
Rimi Baltic
• Solid Q4 with continued good sales and profitability growth
• Increased market shares during Q4 for Rimi Baltic • Improving in all countries, particularly in Latvia
• Ambitious programme for store conversions and new
stores, mainly in Lithuania • Total Rimi Baltic 2014: 12 new stores
• In total 242 stores by year end
ICA Bank
• Business volume continues to increase
• Adverse repo rate impact
• Number of customers increased in 2014 to 656 000 (+ 7%)
6
Segments during the quarter (cont’d.)
ICA Real Estate
• Långeberga project in final stage with good progress
• Norwegian real estate is made ready for divestment
• Awaiting closure of ICA Norway divestment
• Sales process ready to be initiated late 2015
Portfolio companies
• Hemtex and Cervera deliver full year profit
• Divestment process of Cervera is initiated
7
The new pharmacy business
• Transaction closed on January 15, 2015 • Apotek Hjärtat included in ICA Gruppen from that date
• Pharmacy business (Apotek Hjärtat + Cura apotek) reported as
separate segment from Q1 2015
• Apotek Hjärtat is a solid business with strong momentum: • Sales 2014 of SEK 9.6 bn (8.3)
• EBIT 2014 of 401 MSEK (288)
• CEO of ICA Gruppen’s Pharmacy business: Anders Nyberg
(former CEO of Apotek Hjärtat)
• Integration process runs according to plan
8
Net sales development in Q4
• Net sales increased by 6.2% • In local currencies +5.6%
• Higher sales volumes • ICA Sweden
• Rimi Baltic
• Price development • Sweden: slightly higher than
previously in 2014; 1.4% in Q4,
(YTD 0.6%)
• Latvia’s price development was
slightly up in Q4, the other Baltic
countries at continued low level in Q4
Net sales (MSEK)
Net sales
+5.8%
10
21 820 23 180
0
5 000
10 000
15 000
20 000
25 000
Q4 2013 Q4 2014
Sales in
local
currencies:
5.6%
Earnings development in Q4
• Group EBIT excluding non-recurring
items increased by 2.2%
• Positive sales volume impact
• Higher store costs • New stores in Sweden
• Additional Cura pharmacies
• More hypermarkets in Latvia and
Lithuania
EBIT excluding non-recurring items (MSEK)
11
1 058 1 081
0
200
400
600
800
1 000
1 200
Q4 2013 Q4 2014
MSEK
EBIT excl.
non-recurring
items +2.2%
Food retail market and inflation according to HUI Retail Sales Index
Sales development for ICA stores and the food
retail market in Sweden Total store sales (including Non-food)
12
-1,00
0,00
1,00
2,00
3,00
4,00
5,00
Food Retail Market ICA ICA, Comparables Inflation
Percent (value)
Store sales in Sweden
Development compared with the same period 2013
13
October-December 2014 January-December 2014
Store sales excl. VAT MSEK Development
total
Development
comparable MSEK
Development
total
Development
comparable
Maxi ICA Stormarknad 8,383 5.4% 3.3% 31,152 3.4% 2.2%
ICA Kvantum 6,653 5.9% 3.5% 25,230 4.5% 2.2%
ICA Supermarket 8,114 2.2% 2.6% 32,261 1.7% 1.4%
ICA Nära 3,835 2.7% 2.9% 15,712 1.3% 2.1%
Total 26,985 4.2% 3.1% 104,356 2.8% 1.9%
ICA Sweden Increased market shares and investments for future growth
• Increased net sales +6.2%
mainly due to: • Dry goods and fresh
• Cura Pharmacy
• New stores
• EBIT excluding non-
recurring items almost flat
due to: • Store openings drive cost
• Intensive phase of strategic
initiatives
MSEK MSEK
14
MSEK Q4 YTD
2014 2013 2014 2013
Net Sales 18,696 17,602 71,026 67,992
EBIT excl. non-recurring items 816 819 3,249 3,058
EBIT margin excl. non-recurring items 4.4% 4.7% 4.6% 4.5%
PL share of store sales - - 22.7% 21.5%
Number of stores - - 1,314 1,321
0
200
400
600
800
1 000
0
4 000
8 000
12 000
16 000
20 000
Q4 2013 Q4 2014
Net Sales EBIT excl. non-recurring items
Sales development for Rimi stores and the food
retail market in the Baltics
15
Percent (value)
-2,00
0,00
2,00
4,00
6,00
8,00
10,00
Food Market (EE adj) Rimi retail sales Rimi comparable retail sales Market Inflation
Rimi Baltic Strong Q4 and increased market shares
• Net sales rose by more than
12% in Q4 • In local currencies +7.7% and
comparable stores +3.9%
• Increases in all countries and
categories
• Improved EBIT excl. non-
recurring items +28% • Higher sales
• Improved gross margin
• Better format mix and
increased PL share
16
Note: exchange rates SEK/EURO Q4 2014: 9.2802 Q4 2013: 8.8729
MSEK Q4 YTD
2014 2013 2014 2013
Net Sales 3,195 2,838 11,632 10,333
EBIT excl. non-recurring items 145 113 383 308
EBIT margin excl. non-recurring items 4.5% 4.0% 3.3% 3.0%
PL share of store sales - - 19.9% 18.2%
Number of stores - - 242 235
0
50
100
150
0
1 000
2 000
3 000
4 000
Q4 2013 Q4 2014
Net Sales EBIT excl. non-recurring items
MSEK MSEK
ICA Bank Increased business volume
• Increased business volume,
now 656 000 customers (+7%)
• Slightly lower revenues in Q4
due to lower net interest, driven
by low repo-rate
• Lower EBIT excl. non-recurring
items: • Lower revenues partly
compensated by cost
reductions
• Lower credit loss provision
release compared to Q4 last
year
17
MSEK Q4 YTD
2014 2013 2014 2013
Net Sales 207 215 848 850
EBIT excl. non-recurring items 45 51 189 201
EBIT margin excl. non-recurring items 21.7% 23.7% 22.3% 23.6%
Business volume - - 26,353 24,772
0
50
0
100
200
Q4 2013 Q4 2014
Net Sales EBIT excl. non-recurring items
MSEK MSEK
ICA Real Estate Stable business development
• Net sales in line with Q4 last
year
• Lower EBIT excl. non-recurring
items: • Significantly higher depreciation
due to changed assessment of
life length
• Large divestments end Q3 2014
• Partly off-set by income from
new investments
18
MSEK Q4 YTD
2014 2013 2014 2013
Net Sales 575 573 2,253 2,255
Depreciation -130 -107 -515 -421
EBIT excl. non-recurring items 95 123 409 473
EBIT margin excl. non-recurring items 16.5% 21.5% 18.2% 21.0%
0
50
100
150
0
100
200
300
400
500
600
700
Q4 2013 Q4 2014
Net Sales EBIT excl. non-recurring items
MSEK MSEK
Portfolio companies A more streamlined business
• Excl Forma, sales increased
by 2.8%, mainly due to
Hemtex
• Comparable EBIT (excl Forma
and Kjell & Company) on par
with last year: 116 MSEK (118)
• Improved EBIT in Hemtex and
Cervera but lower result in
inkClub
19
MSEK
Q4 YTD
2014 2013 2014 2013
Net Sales 833 892 2,564 2,657
EBIT excl. non-recurring items 116 131 53 21
EBIT margin excl. non-recurring items 13.9% 14.7% 2.1% 0.8%
0
50
100
150
0
200
400
600
800
1 000
Q4 2013 Q4 2014
Net Sales EBIT margin excl. non-recurring items
MSEK MSEK
Net sales and
EBIT excluding non-recurring items in Q4
20
Net sales,
MSEK Q4 2014 Q4 2013
ICA Sweden 18,696 17,602
Rimi Baltic 3,195 2,838
ICA Bank 207 215
ICA Real Estate 575 573
Portfolio companies 833 892
Intra-group sales & other -326 -300
Total 23,180 21,820
EBIT excl. non-recurring items,
MSEK Q4 2014 Q4 2013
ICA Sweden 816 819
Rimi Baltic 145 113
ICA Bank 45 51
ICA Real Estate 95 123
Portfolio companies 116 131
Intra-group sales & other -136 -179
Total 1,081 1,058
Cash-flow Excluding ICA Bank
• Operational cash-flow at BnSEK 1.7
(2.0) in Q4 excluding Norway affected
by:
• Normal seasonality
• Slightly higher A/R and inventory
• Investments marginally higher
• Divestments lower due to divestments
to Ancore in Q4 2013
Pro forma until Q2 2013
21
0
1 000
2 000
3 000
4 000
5 000
6 000
-250
250
750
1 250
1 750
2 250
2 750
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2013 2014
Cash flow from operating activities, excl.ICA Bank
Cash flow R12
MSEK MSEK
Long-term
goal <2.0x
Net debt / EBITDA ratio lower
• Net debt decreased by BnSEK 1.2
to BnSEK 7.1 in Q4 driven by EBIT
and positive working capital
movement
• Net Debt/EBITDA: 1.2x
• Net Debt reduced by BnSEK 2.1 full
year
ICA Gruppen Net debt / Proforma EBITDA
22
2.8x
1.9x 2.0x
1.7x
1.5x
1.2x
0,0
1,0
2,0
3,0
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014
Goal Actual 12 months
rolling 31
December 2014
Long-term
Grow faster than the market
Sweden
Baltics All markets
EBIT margin excl. non-recurring
items 4.5% 4.5%
Return on capital employed* 10.1% 10%
Net debt/EBITDA** 1.2x <2.0x
Dividend (% profit for the year) 42%*** At least 50%
* Excluding ICA Bank
** Interest-bearing liabilities excluding pensions and ICA Bank minus cash and cash equivalents in
relation to EBITDA, excluding effects of acquisitions, before depreciation and impairment.
*** Based on proposed dividend for 2014
ICA Gruppen’s financial targets
23
Outlook
Sweden • Continued positive development for ICA Sweden
• High project activity drive investments/costs
• According the HUI the total food market is expected to grow
by 1.5% in 2015
Baltics • Continued sales growth for Rimi Baltic – positive signs in all
countries
• Continued focus on new establishments
• 15-20 store openings in 2015, mainly in Lithuania
ICA Bank • Lower repo rate impacts future earnings expectations
• Strong focus on increasing products per customer
24
Outlook (cont’d)
ICA Real Estate
• Expansion of Helsingborg distribution center to be finalized
• Divested properties to Ancore gives lower revenues short-term
• Norwegian properties to be divested when ICA Norway
divestment is finalized
Streamlining and growth • Complete the divestment of ICA Norway
• Successful integration of Apotek Hjärtat
• Process initiated to divest Cervera
25
Summary
• Continued positive development during the fourth quarter • Net sales +6%
• EBIT excluding non-recurring items +2%
• Increased market shares in Sweden and the Baltics
• Acquisition of Apotek Hjärtat finalized and integration process
in start-up phase
• Divestment of ICA Norway ongoing
• Our work with other strategic priorities continues according to
plan, among others: • Online
• CRM
• Build ICA Gruppen’s new health position
26
Disclaimer
The information is such that ICA Gruppen AB (publ) is obliged to make public pursuant to the
Securities Market Act (SFS 2007:528) and/or the Act on Trade with Financial Instruments (SFS
1991:980). The information was distributed to media for publication on February 11, 2015 at 7.00 CET.
This report contains forward-looking statements that reflect the Board of Directors’ and management’s
current views with respect to certain future events and potential financial performance. Although the
Board of Directors and the management believe 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, among other factors, (i) changes in economic, market and competitive conditions, (ii)
success of business and operating initiatives, (iii) changes in the regulatory environment and other
government actions, (iv) fluctuations in exchange rates and (v) business risk management.
This report does not imply that the Company has undertaken to revise these forward-looking
statements, beyond what is required under the company’s registration contract with Nasdaq
Stockholm, if and when circumstances arise that will lead to changes compared to the date when
these statements were provided.
28