Press and analyst presentation – Agreement with OcadoMay 2, 2018

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Next natural step on our digital journey

Enables ICA to deliver an outstanding customer experience

Strengthens our market leadership – online and offline

Main take aways

• Online grocery offering started in 2014

• Market leader after strong sales growth since end 2016

• Still untapped e-commerce potential in larger metropolitan areas for ICA

ICA Online – a good track record

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MARKET

ICA

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2016 2017 2018

Ocado deal in brief

• The Ocado cooperation gives ICA access to a world-leading e-commerce platform and technology for highly automated e-commerce picking warehouses

• Ocado’s e-commerce platform, designed specifically for grocery e-commerce, offers a front-end web site functionality that highly increases the customer experience

• Ocado will adapt their platform to ICA’s business model with independent retailers

• ICA will benefit from the fact that several leading grocery retail companies are jointly contributing to developing the platform

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Some key figures

• Overall capex in 2018-2022– ICA Sweden: ~600 MSEK

• Whereof ~200 MSEK in 2018– ICA Real Estate ~500 MSEK

• Group total SEK ~1.1 billion

• Impairment in Q2 2018 ~80 MSEK

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Outstanding customer experience

• An automated e-commerce warehouse will enable offering of a wider product range online and better deliveries– Product range from 14,000 to 40,000

• A more flexible tool for local retailers to customize their offerings

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Personalized customer journey

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• A more personalized customer journey with functionality that simplifies everyday life– More accurate recommendations based on preferences and past buying behavior– Ability to subscribe to recurring products / basic goods– Guided check out where the customer receives reminders and recommendations– End-to-end integration between e-commerce platform and warehouse means higher

service to customers and fewer replacement products– Automation means a much wider range, compared to store pockets or manual e-commerce

stores

Improved business efficiency

• The highly automated warehouse will streamline ICA’s logistics flows and create efficiencies– Much lower picking costs– Home delivery more efficient

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Ocado platform to be used cross-OpCo

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• The Ocado platform will eventually be used for all of ICA Gruppen’s customer offering online– Non food and Apotek Hjärtat’s traded goods will over time be sold via the same platform – This enables ICA Gruppen to ensure a combined customer offering online

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Next natural step on our digital journey

Enables ICA to deliver an outstanding customer experience

Strengthens our market leadership – online and offline

Main take aways