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Growth in all segments and increased market shares Interim report Q3 2025
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Interim report Q3 2025 2 Strong quarter with high customer traffic, volume growth and increased market shares Improved efficiency in logistics and solid cost control contributing to higher profits and the Group’s competitiveness Growth in all segments and increased market shares Q3 Plan to establish new logistics centre in Kungsbacka to increase efficiency and capacity also in southern Sweden Continued momentum for Willys, Hemköp and Snabbgross, positive trend in City Gross
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Interim report Q3 2025 –Market update, Q3 and strategic agenda –Financial position –Outlook and summary –Q&A Agenda 3
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Market update, Q3 and strategic agenda Interim report Q3 2025 4
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Source: Axfood/HUI Research. City Gross was acquired on 1 November 2024. *Pro forma in 2024 including City Gross FY net sales. Interim report Q3 2025 5 Consistently outperforming the market 0 5 10 15 20 25 % Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 19.5% 6.2% 5.4% Q3 2025 Axfood Axfood ex. City Gross Food retail trade index 17.6% 2015 17.9% 2016 18.7% 2017 19.0% 2018 19.4% 2019 19.9% 2020 19.9% 2021 20.7% 2022 22.0% 2023 25.1% 22.0% 2024 25.2% 22.4% 9M 2025 Axfood market share (value) development 2015 to 9M 2025Retail sales y-o-y growth Axfood* Axfood ex. City Gross
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–Net sales increased by 6.6% –Strong momentum and volume growth in Willys, Hemköp and Snabbgross –Positive trend in like-for-like sales for City Gross –Retail sales increased by 19.5% –Retail sales increase of 6.2% excluding City Gross –Total market growth was 5.4%* –E-commerce sales increase of 11.3% (5.6% ex. City Gross and Middagsfrid) compared to the market at 8.4%* Interim report Q3 2025 6 Group net sales and retail sales Strong growth and higher volumes *Refers to retail sales. **Refers to retail sales. City Gross was acquired on 1 November 2024. Sales breakdown, SEK m Q3 2025 Q3 2024 Chg LFL chg Willys* 12,076 11,366 6.2% 4.1% Hemköp 1,995 1,863 7.1% n/a Hemköp incl. franchise and Tempo* 5,373 5,060 6.2% 4.8% City Gross** 2,177 – – – Snabbgross 1,609 1,518 6.0% 6.0% Dagab 19,984 19,090 4.7% n/a Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025 13,723 18,674 20,293 20,902 22,286 +6.6% Net sales, SEK m *Source: HUI Research
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Adj. operating margin, %* Adj. operating profit, SEK m* 811 5.9 Q3 2021 5.4 Q3 2022 5.4 Q3 2023 4.8 Q3 2024 4.9 Q3 2025 1,015 1,095 1,007 1,099 +9.0% –Operating profit SEK 1,059 m (1,007), adjusted operating profit* SEK 1,099 m (1,007) –Positive profit development across all operating segments with strong sales growth, higher productivity, and solid cost control –Items affecting comparability totalled SEK -39 m (–)** –Operating margin 4.8% (4.8), adjusted operating margin* 4.9% (4.8) Interim report Q3 2025 7 Group operating profit Improved profits in all segments *Excluding items affecting comparability. City Gross was acquired on 1 November 2024. Operating profit breakdown, SEK m Q3 2025 Q3 2024 Chg Willys 587 556 5.5% Hemköp 103 94 8.6% City Gross, reported -43 – – City Gross, adjusted* -4 – – Snabbgross 101 85 18.3% Dagab 341 312 9.3% Joint Group -28 -40 29.3% *Excluding items affecting comparability. **Pertains to structural costs in City Gross.
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–Net sales increased by 6.2% and LFL 4.1% –Growth higher than the market –Higher volumes with increased customer traffic and new store establishments, and higher average ticket value –Total store network 256 (244) –In total 1 new store establishment and 1 store conversion from City Gross during the quarter –High pace in store modernisations –Operating profit SEK 587 m (556) –Operating margin 4.9% (4.9) –Higher volumes and positive LFL retail sales growth –Stable gross margin and solid cost control Interim report Q3 2025 8 Willys Increased market share and higher profit, strong focus on increasing presence 5.8 Q3 2021 6.4 Q3 2022 6.0 Q3 2023 4.9 Q3 2024 4.9 Q3 2025 7,873 9,450 10,945 11,364 12,074 +6.2%Operating margin, % Net sales, SEK m
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Accelerating Willys’ store expansion 9 Willys is accelerating its expansion pace with store establishments to reach even more consumers. In October, a significant milestone was reached when Willys opened store number 250. Interim report Q3 2025 Number of Willys stores in total in October 2025 250 194 196 199 200206 212 219 225 234 241 250 Development in number of Willys stores in total
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–Net sales increased by 7.1% –Retail sales growth of 6.2%, LFL 4.8% –Growth higher than the market –Higher volumes with increased customer traffic, and higher average ticket value –Total store network 326 (326) –High pace in store modernisations –Operating profit SEK 103 m (94) –Operating margin 5.1% (5.1) –Higher volumes and positive LFL retail sales growth –Stable gross margin and solid cost control Interim report Q3 2025 10 Hemköp Growth higher than the market and increased profit 5.2 Q3 2021 4.8 Q3 2022 4.4 Q3 2023 5.1 Q3 2024 5.1 Q3 2025 1,459 1,608 1,779 1,863 1,995 +7.1% Operating margin, % Net sales, SEK m
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11 Hemköp performing strongly in traditional grocery Source: Competitor benchmarking study conducted by YouGov, Jun-Aug 2025 vs. Jun-Aug 2024. *Refers to unweighted averages in traditional grocery segment and includes ICA Kvantum, ICA Supermarket, ICA Nära and Coop. Interim report Q3 2025 +0.1 bps Penetration among households -1.3 bps Hemköp Main peers, traditional grocery* +2.5 bps +0.1 bps Loyalty among households With its strong growth, Hemköp is outperforming its peers in the traditional grocery segment. Hemköp is also demonstrating stronger trends in household penetration and loyalty.
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Interim report Q3 2025 12 City Gross Continued high activity level to strengthen market position –Net sales amounted to SEK 2,178 m (–) –Retail sales growth of 0.6%, LFL 3.2% –Total store network 40 (–) –Closure of Borlänge store ahead of concept change to Willys –Operating profit SEK -43 m (–), adjusted operating profit* SEK -4 m (–) –Operating margin -2.0% (–), adjusted operating margin* -0.2% (–) –Improvement in adjusted margin compared to previous quarters, with effects from structural measures and efficiencies –Positive LFL retail sales growth City Gross was acquired on 1 November 2024. *Excluding items affecting comparability. Items affecting comparability pertains to structural costs including discontinuation costs for the Kungens Kurva store in Stockholm, reorganisation, and sales clearance within the non-food assortment.
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8.0 Q3 ’22 Q4 ’22 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Positive trend in City Gross’ like-for-like sales 13 City Gross like-for-like sales on a rolling 12-month basis, SEK billion Interim report Q3 2025 Axfood acquired City Gross on 1 November 2024 The activity level to strengthen City Gross’ market position is high with improvement initiatives in many areas. Recently, City Gross has demonstrated a positive trend in like-for-like sales.
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0 5 10 15 6.8 Q3 2021 6.8 Q3 2022 6.0 Q3 2023 5.6 Q3 2024 6.3 Q3 2025 1,132 1,324 1,437 1,518 1,609 +6.0% –Net sales increased by 6.0% and LFL 6.0% –Higher volumes with increased customer traffic, and higher average ticket value –Total store network 31 (31) –Operating profit SEK 101 m (85) –Operating margin 6.3% (5.6) –Positive LFL retail sales growth –Stable gross margin and solid cost control Interim report Q3 2025 14 Snabbgross Higher sales and profitability Operating margin, % Net sales, SEK m
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2.0 Q3 2021 1.8 Q3 2022 1.8 Q3 2023 1.6 Q3 2024 1.7 Q3 2025 12,211 16,971 18,410 19,090 19,984 +4.7% –Net sales increased by 4.7% –Growth driven by sales to Willys, Hemköp and Snabbgross –Operating profit SEK 341 m (312) –Operating margin 1.7% (1.6) –Strong sales growth –Improved cost level in logistics through efficiency coming from new logistics platform –Lower gross margin Interim report Q3 2025 15 Dagab Increased profitability with sales growth and productivity gains *Excluding items affecting comparability. Adj. operating margin, %* Net sales, SEK m
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16 Facility designed for food retail The new logistics centre to handle all temperature zones for food retail. Service trade and e-commerce to be handled separately in existing warehouses. Approximate size 90k sq. m Axfood is establishing a new, highly automated logistics centre to increase capacity and efficiency in southern Sweden. Letters of intent have been signed with Witron to use the company’s automation technology and with the Municipality of Kungsbacka to locate the logistics centre to Frillesås. Increasing efficiency and capacity also in southern Sweden with new Kungsbacka facility Degree of automation 90%Ramp-up to be initiated in 2030 The new Kungsbacka facility will primarily replace the existing warehouse in Backa, Gothenburg. Ramp up will be gradual and is estimated to be initiated in 2030. Increase in capacity 20% Interim report Q3 2025
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Financial position Interim report Q3 2025 17
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Interim report Q3 2025 Nine-month sales and operating profit Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* 9M 2024 9M 2025 62,197 66,321 +6.6% 9M 2024 9M 2025 2,661 2,814 +5.8% 9M 2024 9M 2025 4.3 4.2 0.0 *Excluding items affecting comparability. 18
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Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025 1,054 1,487 1,423 1,013 1,352 Interim report Q3 2025 Cash generation analysis Cash flow from operating activities, SEK m –Strong cash flow from operating activities –Positive impact from changes in net working capital –Cash flow from investing activities somewhat higher than in the prior year –Increased investments in retail operations with store refurbishments and new store establishments –Cash flow from financing activities in line with the prior year –Lower level for the 9M’25 period, with new loans raised offset by amortisation of debt Cash flow, SEK m Q3 2025 Q3 2024 9M 2025 9M 2024 Operating activities 1,352 1,013 4,513 3,587 Investing activities -421 -355 -1,296 -1,135 Financing activities -971 -1,015 -3,618 -2,854 Cash flow for the period -40 -358 -401 -403 19
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Interim report Q3 2025 Financial position and investments 1.6 0.3 Q3 2024 2.2 0.6 Q4 2024 2.3 0.8 Q1 2025 2.2 0.6 Q2 2025 2.1 0.7 Q3 2025 10,724 14,861 15,796 15,337 15,613 Net debt, SEK m Net debt/EBITDA multiple Net debt/EBITDA multiple ex. IFRS 16 Leverage – Net debt level higher than in the prior year due to loans raised in conjunction with City Gross acquisition – Somewhat stable net debt level during the course of 2025 Investments – Investments in 9M’25 mostly pertained to store modernisations, new store establishments, and IT – Investments in 2025 are expected to amount to between SEK 1,600 m and SEK 1,700 m, excl. acquisitions and right-of-use assets Equity ratio – Equity ratio impacted by dividend payout and higher net debt from acquisition of City Gross 20 21.8% 22.2% 2021 24.1% 26.4% 2022 23.9% 22.7% 2023 20.9% 23.7% 2024 20.4% 2025 Equity ratio year-end (Q4) Equity ratio Q3 2022 2.4% 3.5% 1.3% 2021 2023 3.7%6.1% 1.5%1.2% 2024 2025E 1.4% 2,593 1,946 3,100 Guidance 1,600 -1,700 3,547 Investments and acquisitions ex. leasehold, SEK m Investments and acquisitions ex. leasehold % of Group sales Depreciation ex. leasehold % of Group sales 1.7% 1.4% 9M 2024 1.9% 1.6% 9M 2025 1,058 1,267
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Interim report Q3 2025 Capital efficiency Net working capital – Slightly negative development compared to the prior year with impact from City Gross acquisition Capital employed – ROCE in line with year-end 2024 – Negative impact on ROCE in 2024 due to higher level of capital employed following City Gross acquisition Return on capital employed 16.4% Net working capital % of Group net sales -3.3% 21 -3.9% 2021 -3.5% 2022 -3.2% 2023 -3.4% 2024 -3.3% R12M to 30 September 2025 -2,260 -2,581 -2,620 -2,875 -2,880 Net working capital, SEK m Net working capital % of net sales 22.4% 2021 20.9% 2022 20.3% 2023 16.6% 2024 16.4% R12M to 30 September 2025 13,550 16,442 17,212 22,985 23,258 Capital employed, SEK m Return on capital employed (ROCE), %
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Outlook and summary Interim report Q3 2025 22
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23 –Planned capital expenditures of SEK 1,600−1,700 m –Excluding acquisitions and leasehold –Reiterated guidance –Plan to establish 9 new Group-owned stores –Revision from previous guidance of 10-15 new Group-owned stores due to timing of certain new store establishments –In addition, establishment of 3 new retailer-owned stores from competing store chains –Items affecting comparability of approx. SEK 115 m –Revision from previous guidance of SEK 100 m –Structural costs related to a handful of City Gross stores mainly through change of store concept Revised outlook 2025 Interim report Q3 2025
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Interim report Q3 2025 24 Leveraging our house of brands and operating model provides a competitive edge Integrated value chain With a highly integrated value chain, Axfood can achieve cost efficiencies and respond quickly to changes in consumer behaviour Scale With its large presence on the market and volume growth, Axfood can scale and strengthen competitiveness further House of brands With distinctive concepts and private label brands, as well as an affordable and a high-quality assortment, Axfood can address varying consumer needs Attractive store network With attractive store locations and a significant potential to expand, Axfood can drive both total and organic growth
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Interim report Q3 2025 25 Q&A
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GROUP COMMON IT SYSTEMS BUSINESS DEVELOPMENT Efficient sourcing and logistics for all brands and channels Innovative development of private label products R12M net sales to Q3 2025, SEK 88.2bn Employees, FTEs 15,675 Customer reach ~5 million customers a week 395 Group-owned stores 133 franchise Hemköp 125 franchise Tempo In total, collaborating with more than 1,200 stores 5 online brands Interim report Q3 2025 26
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Axfood 4.7 2021 4.2 2022 4.1 2023 3.9 2024 3.8 R12M to Sep. 2025 57,891 73,474 81,111 84,057 88,181 Operating margin, % Net sales, SEK m Interim report Q3 2025 *Refers to retail sales. **Excluding items affecting comparability. 27 Key ratios SEK m Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 22,286 20,902 6.6% 66,321 62,197 6.6% 84,057 Change in like- for-like sales* 4.3% 3.1% 1.2 4.4% 3.8% 0.6 3.7% Operating profit 1,059 1,007 5.2% 2,712 2,661 1.9% 3,290 Adjusted operating profit 1,099 1,007 9.0% 2,814 2,661 5.8% 3,433 Operating margin 4.8% 4.8% -0.1 4.1% 4.3% -0.2 3.9% Adjusted operating margin 4.9% 4.8% 0.1 4.2% 4.3% 0.0 4.1% Number of stores: Group-owned Franchise 395 258 342 259 53 -1 389 258
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Willys 4.7 2021 5.0 2022 4.7 2023 4.4 2024 4.4 R12M to Sep. 2025 32,424 37,451 43,757 45,775 47,973 Operating margin, % Net sales, SEK m Interim report Q3 2025 *Refers to retail sales. 28 Key ratios SEK m Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 12,074 11,364 6.2% 36,111 33,917 6. 5% 45,775 Change in like- for-like sales 4.1% 2.4% 1.7 4.5% 3.1% 1.4 3.1% Operating profit 587 556 5.5% 1,647 1,549 6.4% 1,992 Operating margin 4.9% 4.9% 0.0 4.6% 4.6% 0.0 4.4% Number of stores: Willys Willys Hemma Eurocash 188 61 7 182 55 7 6 6 – 184 57 7
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Hemköp 4.4 2021 4.3 2022 4.0 2023 4.4 2024 4.3 R12M to Sep. 2025 6,202 6,650 7,432 7,878 8,235 Operating margin, % Net sales, SEK m Interim report Q3 2025 *Refers to retail sales. **Comparison figures for the number of Tempo stores have been adjusted down by 6 stores due to an adjustment of historical periods. 29 Key ratios SEK m Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 1,995 1,863 7.1% 6,133 5,776 6.2% 7,878 Change in like- for-like sales* 4.8% 4.5% 0.3 4.1% 5.4% -1.3 5.1% Operating profit 103 94 8.6% 294 282 4.3% 343 Operating margin 5.1% 5.1% 0.1 4.8% 4.9% -0.1 4.4% Number of stores: Group-owned Hemköp, franchise Tempo, franchise 68 133 125 67 133 126 1 0 -1 68 134 124
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City Gross *Reported figures for 2024 pertains to the 1 November - 31 December 2024 period. Comparison figures are not presented. **Excluding items affecting comparability. Key ratios SEK m* Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 2,178 – – 6,557 – – 1,646 Change in like-for-like sales – – – – – – – Operating profit -43 – – -206 – – -40 Adjusted operating profit** -4 – – -104 – – -40 Operating margin -2.0% – – -3.1% – – -2.4% Adjusted operating margin** -0.2% – – -1.6% – – -2.4% Number of stores – – – 40 – – 42 Interim report Q3 2025 30
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Snabbgross 5.0 2021 5.3 2022 5.0 2023 4.6 2024 4.8 R12M to Sep. 2025 3,825 4,727 5,317 5,533 5,774 Operating margin, % Net sales, SEK m Interim report Q3 2025 31 Key ratios SEK m Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 1,609 1,518 6.0% 4,454 4,213 5.7% 5,533 Change in like-for- like sales 6.0% 4.9% 1.1 5.8% 2.7% 3.1 3.3% Operating profit 101 85 18.3% 222 196 13.1% 253 Operating margin 6.3% 5.6% 0.7 5.0% 4.7% 0.3 4.6% Number of stores 31 31 – 31
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Dagab 1.8 2021 1.5 2022 1.4 2023 1.5 2024 1.6 R12M to Sep. 2025 52,295 66,999 74,175 76,589 79,658 Operating margin, % Net sales, SEK m Interim report Q3 2025 *Excluding items affecting comparability. 32 Key ratios SEK m Q3 2025 Q3 2024 Chg 9M 2025 9M 2024 Chg 2024 Net sales 19,984 19,090 4.7% 59,834 56,765 5.4% 76,589 Operating profit 341 312 9.3% 926 828 11.9% 1,156 Operating margin 1.7% 1.6% 0.1 1.5% 1.5% 0.1 1.5%