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Strong year-end with growth higher than the market Year-end report 2025
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Year-end report 2025 2 Strong year-end with higher customer traffic, volume growth and increased market shares Higher earnings and operating margin for the Group, driven by increased sales, solid cost control and cost savings Strong year-end with growth higher than the market Q4 Agreement signed for automation equipment in planned new logistics centre in Kungsbacka Strong growth and higher volumes for Willys, Hemköp and Snabbgross, continued positive trend in City Gross
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Market update and Q4 development Year-end report 2025 3
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Source: Axfood/HUI Research. City Gross was acquired on 1 Nov. 2024. *Pro forma in 2024 including City Gross FY net sales. Year-end report 2025 4 Eleven consecutive years of market share gains 0 5 10 15 20 25 % Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 8.7% 5.3% 4.5% Axfood Axfood ex. City Gross Food retail trade index 2014 17.9% 2016 18.7% 2017 19.0% 2018 19.4% 2019 19.9% 2020 20.0% 2021 20.7% 2022 22.0% 2023 25.1% 22.0% 2024 25.2% 2025 22.3% 2015 17.6%17.2% Axfood market share (value) development 2014 to 2025Retail sales y-o-y growth Axfood* Axfood ex. City Gross
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–Net sales increased by 4.4% –Retail sales increased by 8.7% –Higher volumes and positive trend in like-for-like sales in all retail chains –Retail sales increase of 5.3% excluding City Gross –Total market growth was 4.5%* –E-commerce sales increase of 7.6% (5.6% ex. City Gross) compared to the market at 8.3%* Year-end report 2025 5 Group net sales and retail sales Higher sales and volumes *Refers to retail sales. **City Gross was acquired on 1 Nov. 2024. The comparison period refers to Nov.-Dec. 2024. Sales breakdown, SEK m Q4 2025 Q4 2024 Chg LFL chg Willys* 12,496 11,861 5.3% 3.1% Hemköp 2,216 2,103 5.4% n/a Hemköp incl. franchise and Tempo* 5,629 5,344 5.3% 3.4% City Gross** 2,341 1,646 42.3% n/a Snabbgross 1,399 1,321 6.0% 5.9% Dagab 20,746 19,824 4.6% n/a Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 17,062 19,740 20,769 21,860 22,831 +4.4% Net sales, SEK m *Source: HUI Research
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Adj. operating margin, %* Adj. operating profit, SEK m* 653 734 815 772 873 3.8 Q4 2021 3.7 Q4 2022 3.9 Q4 2023 3.5 Q4 2024 3.8 Q4 2025 +13.1% –Operating profit SEK 860 m (629), adjusted operating profit* SEK 873 m (772) –Increased profit primarily driven by higher sales volumes and good growth in both total and like-for-like sales, a stable gross margin trend and effective cost control –Joint-Group improved partly as a result of cost savings –Items affecting comparability totalled SEK -13 m** (-143) –Operating margin 3.8% (2.9), adjusted operating margin* 3.8% (3.5) Year-end report 2025 6 Group operating profit Improved profitability *Excluding items affecting comparability. City Gross was acquired on 1 Nov. 2024. Operating profit breakdown, SEK m Q4 2025 Q4 2024 Chg Willys 467 443 5.3% Hemköp 78 61 27.7% City Gross, reported 14 –40 136.0% City Gross, adjusted* 28 –40 169.6% Snabbgross 35 57 -38.7% Dagab 314 329 -4.6% Joint Group -48 -78 38.2% *Excluding items affecting comparability. **Pertains to structural costs in City Gross.
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–Net sales increased by 5.3% –Retail sales growth of 5.4%, LFL 3.1% –Growth higher than the market –Higher volumes with increased customer traffic and new store establishments –Total store network 256 (248) –In total 1 new store establishment and 1 store conversion from City Gross during the quarter –High pace in store modernisations –Operating profit SEK 467 m (443) –Operating margin 3.7% (3.7) –Higher sales volumes –Stable gross margin trend, solid cost control Year-end report 2025 7 Willys Growth higher than the market and increased profit, leveraging strong momentum to expand presence 4.1 Q4 2021 4.1 Q4 2022 4.1 Q4 2023 3.7 Q4 2024 8,424 10,380 11,325 11,861 Q4 2025 12,496 3.7 +5.3%Operating margin, % Net sales, SEK m
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–Net sales increased by 5.4% –Retail sales growth of 5.3%, LFL 3.4% –Growth higher than the market –Higher volumes with increased customer traffic –Higher average ticket value –Total store network 330 (326) –In total, establishment of 1 new Group-owned store and 3 new retailer-owned stores –High pace in store modernisations –Operating profit SEK 78 m (61) –Operating margin 3.5% (2.9) –Increased sales –Somewhat higher gross margin, solid cost control Year-end report 2025 8 Hemköp Improved profitability, gaining market share and strengthening position in traditional grocery 4.5 Q4 2021 4.2 Q4 2022 3.9 Q4 2023 2.9 Q4 2024 3.5 Q4 2025 1,635 1,792 1,976 2,103 2,216 +5.4%Operating margin, % Net sales, SEK m
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Year-end report 2025 9 City Gross Positive development in seasonally strong quarter –Net sales amounted to SEK 2,341 m (1,646) –Retail sales growth of 0.8%, LFL 3.0%* –Total store network 40 (42) –Operating profit SEK 14 m (-40), adjusted operating profit** SEK 28 m (-40) –Operating margin 0.6% (-2.4), adjusted operating margin** 1.2% (-2.4) –Clear improvement in trend with positive LFL retail sales growth, effects from structural measures and efficiencies City Gross was acquired on 1 Nov. 2024. The comparison period refers to Nov.-Dec. 2024 unless stated otherwise. *The prior year comparison period refers to Oct.-Dec. 2024. **Excluding items affecting comparability. Items affecting comparability pertains to structural costs including discontinuation costs for stores and sales clearance within the non-food assortment.
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986 4.5 Q4 2021 4.4 Q4 2022 4.6 Q4 2023 4.3 Q4 2024 2.5 Q4 2025 1,170 1,244 1,321 1,399 +6.0% –Net sales increased by 6.0% and LFL 5.9% –Higher volumes with increased customer traffic –Higher average ticket value –Total store network 31 (31) –Operating profit SEK 35 m (57) –Operating margin 2.5% (4.3) –Lower gross margin due to temporary market investments Year-end report 2025 10 Snabbgross Increased sales, earnings impacted by lower gross margin Operating margin, % Net sales, SEK m
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1.8 Q4 2021 1.6 Q4 2022 1.7 Q4 2023 1.7 Q4 2024 1.5 Q4 2025 15,716 18,220 19,007 19,824 20,746 +4.6% –Net sales increased by 4.6% –Growth driven by sales to Axfood’s own concepts –Operating profit SEK 314 m (329) –Operating margin 1.5% (1.7) –Lower gross margin due to market investments and negative mix effects Year-end report 2025 11 Dagab Good growth and continued productivity gains in logistics, lower gross margin *Excluding items affecting comparability. Adj. operating margin, %* Net sales, SEK m
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Financial position Year-end report 2025 12
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Year-end report 2025 Full-year net sales and operating profit Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* 2024 2025 84,057 89,152 +6.1% 2024 2025 3,433 3,688 +7.4% 2024 2025 4.1 4.1 +0.1 *Excluding items affecting comparability. 13
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Year-end report 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 –Improved cash flow from investments –City Gross acquisition impacted the prior year period –2025 investments focused on retail operations –Decreased cash flow from financing activities –New loans raised in conjunction with City Gross acquisition impacted the prior year period Cash flow, SEK m Q4 2025 Q4 2024 2025 2024 Operating activities 2,238 1,872 6,751 5,459 Investing activities -471 -2,049 -1,767 -3,184 Financing activities -1,024 627 -4,643 -2,227 Cash flow for the period 742 450 341 47 14 Q4 2021 Q4 2022 Q4 2023 Q4 2024 1,288 1,844 2,219 1,872 Q4 2025 2,238
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Year-end report 2025 Financial position and investments 2.2 0.6 Q4 2024 2.3 0.8 Q1 2025 2.2 0.6 Q2 2025 2.1 0.7 Q3 2025 14,861 15,796 15,337 15,613 Q4 2025 14,598 1.9 0.4 Net debt, SEK m Net debt/EBITDA multiple Net debt/EBITDA multiple ex. IFRS 16 Leverage – Net debt level lower than in the prior year with strong cash flow Investments – Investments in 2025 mostly pertained to store modernisations and establishments, vehicles and IT Equity ratio – Group target of an equity ratio of at least 20 percent at year-end exceeded again in 2025 15 21.8% 2021 24.1% 2022 23.9% 2023 20.9% 2024 2025 21.2% Equity ratio year-end 6.1% 1.4% 2021 3.5% 1.2% 2022 2.4% 3.7% 1.5% 2024 2025 3,547 2,593 1,946 3,100 1.3% 1.9% 1.6% 1,731 2023 Investments and acquisitions ex. leasehold, SEK m Investments and acquisitions ex. leasehold % of Group sales Depreciation ex. leasehold % of Group sales
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Year-end report 2025 Capital efficiency Net working capital – Improvement in net working capital in 2025, however slightly negative development in relation to Group sales with impact from City Gross acquisition Capital employed – Negative impact on ROCE in 2024 due to higher level of capital employed following City Gross acquisition – ROCE in 2025 somewhat lower than in the prior year mainly due to annualisation of City Gross acquisition Return on capital employed 15.5% Net working capital % of Group net sales -3.3% 16 -3.9% 2021 -3.5% 2022 -3.2% 2023 -3.4% 2024 2025 -2,260 -2,581 -2,620 -2,875 -2,933 -3.3% Net working capital, SEK m Net working capital % of net sales 22.4% 2021 20.9% 2022 20.3% 2023 16.6% 2024 15.5% 2025 13,550 16,442 17,212 22,985 23,505 Capital employed, SEK m Return on capital employed (ROCE), %
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Strategic agenda, outlook and summary Year-end report 2025 17
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18 Strengthened market positions in 2025 for Willys, Hemköp and City Gross Year-end report 2025 Willys – leveraging strong momentum – Strong growth and increased market share – High pace in store modernisations – Leveraging strong momentum among consumers to accelerate expansion Hemköp – strengthening position City Gross – a year of transformation – Good growth and increased market share – High pace in store modernisations – Focus on price value, sustainability, fresh products and meal solutions – Improvement initiatives in many areas – Gradually improved trend in LFL sales – Positive effects from structural measures – Lower cost level with efforts to streamline operations
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Clear strategic development areas Create business and stakeholder value through health and sustainability Food retail’s most attractive assortment – relevant, affordable and sustainable Expand and optimise the store network with the market’s best business terms World leading operational efficiency, quality and performance in product supply Maximize business value through digitalisation, automation and AI Be the market’s most attractive employer 19 Year-end report 2025
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Continuing to develop private label offering 20 Axfood continued to develop its private label offering in 2025, and launched approximately 270 new products. Sales from private labels increased, reflecting strong demand and an attractive value proposition. Private label share of Axfood net sales, % Year-end report 2025 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 26.8 27.4 28.0 29.5 30.1 30.9 30.9 31.2 32.5 32.6 33.2 32.0 Axfood ex. City Gross Axfood Number of private label product launches in 2025 270
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21 Leveraging house of brands to drive profitable growth Expansion Axfood maintains a high pace in its store expansion to reach more consumers. 283 285 298 302 304 310 316 325 337 389 396 Number of Group-owned stores at the end of each period Year-end report 2025 Axfood leverages its unique house of brands strategy to drive profitable growth and optimise each local marketplace. Optimising each marketplace With its house of brands, Axfood can ensure the right concept in the right place thereby optimising each location. Recent store conversions in Stockholm Bromma and Borlänge Stora Tuna from City Gross to Willys have proven successful, as both stores have experienced a substantial sales increase since conversion. Store sales increase y-o-y adjusted for inflation during the Sep-Dec and Nov-Dec 2025 period, respectively, compared to the corresponding periods the prior year when these were City Gross stores. Willys Stockholm Bromma +52% Willys Borlänge Stora Tuna +75%
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22 Axfood is establishing a new, highly automated logistics centre in Kungsbacka to increase capacity and efficiency in southern Sweden. In the fourth quarter, Axfood signed an agreement with Witron to invest in automation equipment. Investment in automation equipment for new logistics centre in Kungsbacka Year-end report 2025 Timeline allocation of automation investments for Kungsbacka facility 2026 2027 2028 2029 20312030 15% 0% 15% 40% 20% 10% Total automation equipment investment EUR 265 m
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2021 2022 2023 2024 2025 16.8 13.6 12.3 7.9 5.1* 23 Completion of the green transition in transports During the fourth quarter, Axfood completed the transition to fossil-free transports – both in its own and in procured transports – and now uses exclusively renewable fuels or electricity. Emissions from own transports CO2e kg/tonne of goods by full year Year-end report 2025 Emissions from own transports between 2021 and 2025 -70% Target for electrification of vehicle fleet by 2030 50% *Calculated with comparable emission factors from the prior year.
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24 Application to set targets with Science Based Targets initiative In the fourth quarter, Axfood applied to have three climate targets validated by the Science Based Targets initiative (SBTi). SBTi target #1 Axfood commits to reduce absolute greenhouse gas emissions in Scope 1* and Scope 2** with at least 70 percent to 2030 with 2024 as the base year. SBTi target #2 SBTi target #3 (FLAG***) Axfood commits to ensure that at least 70 percent of its suppliers, as measured in expenses, sets science-based climate targets at 2030 the latest. Axfood commits to reduce FLAG- related greenhouse gas emissions with at least 30 percent to 2030 with 2024 as the base year. Year-end report 2025 *Refers to refrigerants, own transports and company cars. **Refers to purchased electricity and heat. ***Refers to forest, land and agriculture.
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–Planned capital expenditures SEK 2,200-2,300 m –Excluding acquisitions and leasehold –Including SEK 470 m for automation in the new logistics centre in Kungsbacka –Plan to establish 10-15 new Group-owned stores –Items affecting comparability of SEK 50 m –Structural costs in City Gross mainly relating to stores 25 9 10 9 12 12 9 2020 2021 2022 2023 2024 2025 2026E Guidance 10-15 *Excluding acquisitions of Bergendahls Food and City Gross. **Refers to the gross number of store establishments. 2020 2021 2022 2023 2024 2025 2026E 1,031 1,825 2,593 1,946 1,539 1,730 Guidance 2,200-2,300 Outlook 2026 Year-end report 2025 Outlook 2026 Capital expenditures excluding leasehold, SEK m* Number of Group-owned new store establishments** For the full year 2026, Axfood issues an outlook for investments, new store establishments and items affecting comparability.
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81 77 85 100 94 92 82 75 74 78 86 83 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025* 4.25 5.00 6.00 7.00 7.00 7.25 7.50 7.75 8.15 8.50 8.75 9.00 –The Board proposes an increased dividend per share of SEK 9.00 (8.75), corresponding to 83 percent of net profit –First payment of SEK 4.50 per share in March 2026 –Second payment of SEK 4.50 per share in September 2026 26 *Proposed by the Board of Directors, to be paid out on two occasions. Year-end report 2025 Dividend Ordinary dividend per share, SEK Dividend payout ratio, % Axfood’s dividend policy sets the goal that the shareholder dividend shall be at least 50 percent of profit after tax. The dividend amount is to be paid on two occasions.
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27 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 Year-end report 2025 Leveraging our house of brands and operating model provides a competitive edge
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Year-end report 2025 28 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 Net sales 2025, SEK 89.2bn Employees, FTEs 15,612 Customer reach >6 million customer visits a week 396 Group-owned stores 134 franchise Hemköp 127 franchise Tempo In total, collaborating with more than 1,200 stores 5 online brands Year-end report 2025 29
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Axfood 4.7 2021 4.2 2022 4.1 2023 3.9 2024 4.0 2025 57,891 73,474 81,111 84,057 89,152 Operating margin, % Net sales, SEK m Year-end report 2025 *Refers to retail sales. **Excluding items affecting comparability. 30 Key ratios SEK m Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 22,831 21,860 4.4% 89,152 84,057 6.1% Change in like- for-like sales* 3.1% 3.5% -0.4 4.0% 3.7% 0.3 Operating profit 860 629 36.7% 3,572 3,290 8.6% Adjusted operating profit 873 772 13.1% 3,688 3,433 7.4% Operating margin 3.8% 2.9% 0.9 4.0% 3.9% 0.1 Adjusted operating margin 3.8% 3.5% 0.3 4.1% 4.1% 0.1 Number of stores: Group-owned Franchise 396 261 389 258 7 3
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Willys 4.7 2021 5.0 2022 4.7 2023 4.4 2024 4.4 2025 32,424 37,451 43,757 45,775 48,607 Operating margin, % Net sales, SEK m Year-end report 2025 *Refers to retail sales. 31 Key ratios SEK m Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 12,496 11,861 5.3% 48,607 45,775 6.2% Change in like- for-like sales 3.1% 3.0% 0.1 4.2% 3.1% 1.1 Operating profit 467 443 5.3% 2,114 1,992 6.1% Operating margin 3.7% 3.7% 0.0 4.4% 4.4% 0.0 Number of stores: Willys Willys Hemma Eurocash 256 189 61 6 248 184 57 7 8 5 4 –1
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Hemköp 4.4 2021 4.3 2022 4.0 2023 4.4 2024 4.5 2025 6,202 6,650 7,432 7,878 8,348 Operating margin, % Net sales, SEK m Year-end report 2025 32 Key ratios SEK m Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 2,216 2,103 5.4% 8,348 7,878 6.0% Change in like- for-like sales* 3.4% 4.6% -1.2 4.0% 5.1% -1.1 Operating profit 78 61 27.7% 372 343 8.4% Operating margin 3.5% 2.9% 0.6 4.5% 4.4% 0.1 Number of stores: Group-owned Hemköp, franchise Tempo, franchise 330 69 134 127 326 68 134 124 4 1 0 3 *Refers to retail sales.
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City Gross *Reported figures for 2024 pertains to the 1 Nov. - 31 Dec. 2024 period. Comparison figures are not presented. **Excluding items affecting comparability. Key ratios SEK m* Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 2,341 1,646 42.3% 8,898 1,646 440.7% Change in like-for-like sales 1.5% – – 1.5% – – Operating profit 14 -40 136.0% -192 -40 -377.5% Adjusted operating profit** 28 -40 169.6% -76 -40 -89.9% Operating margin 0.6% -2.4% 3.1 -2.2% -2.4% 0.3 Adjusted operating margin** 1.2% -2.4% 3.6 -0.9% -2.4% 1.6 Number of stores 40 42 -2 Year-end report 2025 33
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Snabbgross 5.0 2021 5.3 2022 5.0 2023 4.6 2024 4.4 2025 3,825 4,727 5,317 5,533 5,853 Operating margin, % Net sales, SEK m Year-end report 2025 34 Key ratios SEK m Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 1,399 1,321 6.0% 5,853 5,533 5.8% Change in like- for-like sales 5.9% 5.3% 0.6 5.2% 3.3% 1.9 Operating profit 35 57 -38.7% 256 253 1.5% Operating margin 2.5% 4.3% -1.8 4.4% 4.6% -0.2 Number of stores 31 31 –
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Dagab 1.8 2021 1.5 2022 1.4 2023 1.5 2024 1.5 2025 52,295 66,999 74,175 76,589 80,579 Operating margin, % Net sales, SEK m Year-end report 2025 *Excluding items affecting comparability. 35 Key ratios SEK m Q4 2025 Q4 2024 Chg 2025 2024 Chg Net sales 20,746 19,824 4.6% 80,579 76,589 5.2% Operating profit 314 329 -4.6% 1,240 1,156 7.2% Operating margin 1.5% 1.7% -0.1 1.5% 1.5% 0.0