12 November 2014

Per Strömberg, VD

Sven Lindskog, CFO

Q3 report 2014

General information

2

As a consequence of ICA Gruppen’s divestment of the retail

operations in Norway, from the start of the third quarter ICA

Norway is reported as “Profit from discontinued operations”.

This means that in this presentation ICA Norway is not

included in the Group’s consolidated sales and operating

profit. ICA Norway’s earnings are reported on a line in the

consolidated income statement before “Profit for the period”.

The consolidated income statement from 1 January 2012 will

be changed in the same manner. In the balance sheet, ICA

Norway is recognized as “Assets available for sale” and

“Liabilities available for sale” respectively. ICA Norway is

included in consolidated cash flow. ICA Norway is included in

the calculation of consolidated capital employed.

The acquisition of Apotek Hjärtat that was announced today –

November 12, 2014 – will not be presented in this quarterly

report.

A separate presentation of the acquisition is available on ICA

Gruppen’s website.

www.icagruppen.se

Divestment ICA Norway Acquisition of Apotek Hjärtat

ICA Norway divested – acquisition of Apotek Hjärtat

• Net sales increased by 5.8% • In local currency +5.0%

• Increased sales in ICA Sweden and Rimi Baltic

• EBIT excluding non-recurring items +6%

• ICA Norway divested for SEK 2.8 billion,

conditional upon approval from the Norwegian

competition authority, Konkurransetilsynet • Gain approximately SEK 1 billion

• Acquisition of Apotek Hjärtat

• Forma divested • Purchase price SEK 155 million, no earnings impact

• Impairment of goodwill in inkClub

of SEK -322 million

SEK m Q3 2014 Q3 2013 2013

Proforma

Net sales 22,016 20,800 82,993

EBIT

excl. non-recurring items 1,172 1,110 3,695

EBIT 904 1,109 3,482

Net result 495 551 1,424

EBIT margin excl. non-

recurring items 5.3% 5.3% 4.5%

EBIT margin 4.1% 5.3% 4.2%

Profit per share, SEK 2.29 2.76 7.18

3

The market in Sweden

• Continued low inflation

• Repo rate at zero - Riksbanken reduced the repo rate

again in October

• Still low grain prices due to continued good harvests and

large quantities available for export

• Within retail, consumer durables showed strong

development so far this year, +5.6% in fixed prices, while

growth for grocery retail was +1.4% in fixed prices

• According to HUI Research, the grocery market is

expected to grow by 1.5% this year and in 2015

4

Segments during the quarter

ICA Sweden

• Higher market growth than the food retail

market in general • Increased market shares in Q3

• Strategic priorities better than plan: • PL share increased to 22.7% (21.4)

• High growth for Cura pharmacies. No of

pharmacies 64 (55) as of Q3

• 9 new ICA stores established YTD Q3, of which 4

in metro areas

• Test launch of Online initiated

5

Segments during the quarter (cont’d)

Rimi Baltic

• Increased market shares during Q3 for Rimi Baltic • Good growth in Latvia and Lithuania

• Rimi is the third most preferred brand in Latvia

• 6 new stores YTD Q3, out of 12 planned this year

ICA Bank

• Low repo rate impact

• Number of customers and bank cards have continued to

increase during Q3 (compared with Q2) • 13,000 new bank customers

• 24,000 new bank cards

6

Segments during the quarter (cont’d.)

ICA Real Estate

• 10 properties sold to Ancore, a total value of SEK 918

million

Portfolio companies

• Impairment in inkClub • Lower profitability

• Delayed effects from a new technical platform and brand

strategy

• Forma divested

7

The quarter in numbers

Net sales development in Q3

• Net sales increased by 5.8% • In local currencies +5.0%

• Higher sales volumes • Increased market shares in a growing

market

• Price impact limited (store sales) • Sweden, +0.5%

• The Baltics, +0.7%

Net sales (SEK m)

20 800 22 016

0

5 000

10 000

15 000

20 000

25 000

Q3 2013 Q3 2014

Net sales

+5.8%

9

Earnings development in Q3

• Group EBIT excluding non-recurring

items increased by 6%

• Driven by increased volumes

• Partly re-invested in larger strategic

activities

• Improved EBIT mainly in ICA Sweden

EBIT excluding non-recurring items (SEKm)

1 110 1 172

0

200

400

600

800

1 000

1 200

1 400

Q3 2013 Q3 2014

EBIT excl. non-

recurring items

+6%

10

Food retail market and inflation according to HUI Retail Sales Index

-2,0

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

Food retail market ICA ICA, comparables Inflation

Percent (value)

Sales development for ICA stores and the food

retail market in Sweden Total store sales (including Non food)

11

Store sales in Sweden

July-September 2014 January-September 2014

Store sales excl. VAT SEKm

Development

total

Development

comparable SEKm

Development

total

Development

comparable

Maxi ICA Stormarknad 7,708 3.1% 1.9% 22,768 2.7% 1.8%

ICA Kvantum 6,326 5.2% 2.4% 18,577 4.0% 1.8%

ICA Supermarket 8,398 2.1% 1.9% 24,148 1.5% 0.8%

ICA Nära 4,284 1.6% 2.6% 11,880 0.9% 1.8%

TOTAL 26,716 3.0% 2.1% 77,374 2.4% 1.5%

Development compared with the same period 2013

12

ICA Sweden Strong quarter

• Increased net sales +4.8%

• EBIT excl non-recurring

items increased by

approximately 10 percent • High wholesale sales

• Improved profit sharing from

stores vs last year

• Improved results Cura

pharmacy and own stores

• Increased costs for strategic

initiatives

SEKm

Q3

2014

Q3

2013

Jan-Sep

2014

Jan-Sep

2013 FY 2013

Net Sales 17,997 17,171 52,330 50,390 67,992

EBIT excl. non-recurring items 982 891 2,433 2,239 3,058

EBIT margin excl. non-recurring

items 5.5% 5.2% 4.6% 4.4% 4.5%

PL share of store sales - - 22.7% 21.4% 21.4%

Number of stores - - 1,313 1,321 1,321

0

200

400

600

800

1000

0

5 000

10 000

15 000

20 000

Q3 2013 Q3 2014

Net sales EBIT excl. non-recurring items

SEKm SEKm

13

SEKm Q3 2014 Q3 2013

Jan-Sep

2014

Jan-Sep

2013 FY 2013

Net sales 2,952 2,548 8,437 7,495 10,333

EBIT excl. non-recurring

items 93 85 238 195 308

EBIT margin excl. non-

recurring items 3.2% 3.4% 2.8% 2.6% 3.0%

PL share of store sales - - 20.0% 18.0% 18.1%

Number of stores - - 238 233 235

0

20

40

60

80

100

0

1 000

2 000

3 000

Q3 2013 Q3 2014

Net sales EBIT excl. non-recurring items

SEKm SEKm

Rimi Baltic Continued good sales

• Net sales rose by 16% in Q3 • In local currencies +9%

• Slightly improved EBIT excl.

non-recurring items: • Improvement mainly due to

increased sales in Latvia

• Off-set by costs from

conversions and new store

openings

14

Note: exchange rates SEK/EURO Q3 2014: 9.2153, Q3 2013: 8.6783

SEKm Q3 2014 Q3 2013

Jan-Sep

2014

Jan-Sep

2013 FY 2013

Revenues 207 213 641 635 850

EBIT excl. non-recurring

items 58 64 144 150 201

EBIT margin excl. non-

recurring items 28.0% 30,0% 22.5% 23.6% 23.6%

Business volume - - 25,850 24,529 24,772

0

50

100

0

100

200

Q3 2013 Q3 2014

Net sales EBIT excl. non-recurring items

SEKm SEKm

ICA Bank Increased business volume

• Slightly lower revenues in Q3

due to lower net interest, driven

by low repo-rate

• Lower EBIT excl. non-recurring

items: • Lower revenues

• Increased costs mainly due to new

regulations and higher personnel

costs

• Release of credit loss reserve

gave positive impact of SEK +9

million

15

SEKm Q3 2014 Q3 2013

Jan-Sep

2014

Jan-Sep

2013 FY 2013

Net sales 562 564 1,678 1,686 2,255

Depreciation 126 106 385 312 421

EBIT excl. non-

recurring items 112 126 314 350 473

EBIT margin excl. non-

recurring items 19.9% 22.2% 18.7% 20.8% 21.0%

0

50

100

150

0

100

200

300

400

500

600

Q3 2013 Q3 2014

Net sales EBIT excl. non-recurring items

SEKm SEKm

ICA Real Estate Solid development

• Net sales in line with Q3 last year

• Slightly lower EBIT excl. non-

recurring items: • Higher depreciations of SEK 25

million, compensated by higher

revenues from new investments

• 10 properties sold to Ancore • Value SEK 918 million, net gain

SEK 59 million, cash flow effect

SEK 710 million

• New market value • SEK 14.1 billion (incl. Långeberga)

16

MKr

Q3

2014

Q3

2013

Jan-Sep

2014

Jan-Sep

2013

FY

2013

Net sales 579 586 1,731 1,765 2,657

EBIT excl. non-

recurring items -13 -15 -63 -110 21

EBIT margin excl. non-

recurring items -2.2% -2.6% -3.6% -6.2% 0.8%

-50

0

0

200

400

600

Q3 2013 Q3 2014

Net sales EBIT excl. non-recurring items

SEKm SEKm

Portfolio companies Depreciation of goodwill InkClub

• Net sales rose adjusted for

divestment of Forma Books (fall

2013), +5.1%

• EBIT excluding non-recurring items

slightly improved: • Higher results in Cervera and

Hemtex

• Depreciation of goodwill in inkClub,

SEK -322 million

17

Net sales, SEKm

Q3 2014 Q3 2013

ICA Sweden 17 997 17 171

Rimi Baltic 2 952 2 548

Portfolio companies 579 586

ICA Bank 207 213

ICA Real Estate 562 564

Intra-group sales & other -281 -282

Total 22 016 20 800

Net sales and

EBIT excluding non-recurring items in Q3

EBIT excl. non-recurring

items, SEKm Q3 2014 Q3 2013

ICA Sweden 982 891

Rimi Baltic 93 85

Portfolio companies -13 -15

ICA Bank 58 64

ICA Real Estate 112 126

Other -60 -41

Total 1 172 1 110

18

Cash flow Excluding ICA Bank

• Cash flow in the quarter is weaker than

last year

• Increased working capital – calendar

effects

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

2013 2014

Cash flow from operating activities, excl. ICA Bank

Cash flow R12

SEKm SEKm

Pro forma until Q2 2013

19

Long-term

goal <2.0x

0

1

2

3

4

2.7x

2.1x 2.1x

2.8x

1.7x 1.5x

Net debt / EBITDA ratio lower

• Net Debt/EBITDA at 1.5x follow

better 12Mth rolling EBITDA and

lower Net Debt (down SEK 0.8

billion in the quarter to SEK 8.3

billion)

• The lower Net Debt at third

quarter closing is mainly due to

real estate divestments in Sweden

and Rimi Baltic

ICA Gruppen Net debt / Proforma EBITDA

20

Goal Actual 12 months

rolling 30

September 2014

Long-term

Grow faster than the market

Sweden

Baltics All markets

EBIT margin excl. non-recurring

items 4.6% 4.0%

Return on capital employed* 9.3% 9.0%

Net debt/EBITDA** 1.5x <2.0x

Dividend (% profit for the year) 68%*** 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 profit for 2013

ICA Gruppen’s financial targets

• As a consequence of the

acquisitions and

divestments that have

taken place during the fall,

an overview of the group’s

financial targets will be

made during the fourth

quarter

• Potential adjustments will

be announced as soon as

they are decided upon

21

Outlook

Sweden • Continued strong development for ICA Sweden

• Increased costs for strategic activities

• A moderate market growth is expected, weaker than in the

past (HUI Research, expects the grocery market to grow by

1.5% this year and in 2015)

Baltics • Good sales growth for Rimi Baltic

• Continued great focus on new establishments

• Another 6 store openings after the end of Q3

ICA Bank • Lower repo rate impacts future earnings expectations

22

Outlook (cont’d)

ICA Real estate

• Expansion of Helsingborg warehouse continues according to plan

• Divested properties in Q3 gives lower revenues short-term

Streamlining and growth • Complete the divestment of ICA Norway

• Successful integration of Apotek Hjärtat

23

Summary

• Continued positive development during the third quarter • Net sales +5.8%

• EBIT excluding non-recurring items +6%

• ICA Norway divestment

• Acquisition of Apotek Hjärtat

• Increased market shares in Sweden and the Baltics

• Our work with strategic priorities continues according to plan,

among others: • Increased PL share in Sweden and the Baltics

• Establishing new stores in Sweden and the Baltics

• Start building a leading position within Online

24

ICA Gruppen’s

capital markets day

10 December at 13-17 for

analysts, investors and media

Spårvagnshallarna Birger Jarlsgatan 57A, Stockholm

Registration starts at 12.30

To join, please visit www.icagruppen.se/investors

25

2014-11-12

26