Year-End Report, Axfood AB (publ.) for the period 1 January–31 December 2004

Axfood’s consolidated sales in 2004 amounted to SEK 33,826 m (33,616), an increase of 0.6%. Retail sales for Axfood’s wholly owned stores in Sweden rose 6.4%, with a 2.8% rise in same-store sales. Retail sales for wholly owned stores in Spar Finland rose 6.1% during the period in local currency, with a 4.1% drop in same-store sales. Operating profit in 2004 was SEK 1,008 m (1,034). Adjusted for capital gains in 2003 from the sale of real estate, totalling SEK 110 m, and associated companies, totalling SEK 22 m, operating profit rose 11.8%. Operating profit for the fourth quarter was SEK 251 m (274). Profit after tax for the full year was SEK 664 m (684). Earnings per share were SEK 12.40 (12.85). The financial net position at year-end was positive and amounted to SEK 356 m. The dividend policy has been changed, entailing an increase in the dividend to at least 50% of profit after tax. The Board proposes an ordinary dividend of SEK 6.50 per share (5.50), plus an extra dividend of SEK 4.50, entailing a total dividend of SEK 11.00 per share (5.50). In view of the new competitive situation, market investments will be increased in the respective store concepts. Earnings for 2005 are therefore expected to be level with the outcome for 2004, excluding goodwill amortization. For further information, please contact: Mats Jansson, President and CEO, +46-8-553 998 10, mobile +46-70-569 48 11 Lars Nilsson, Executive Vice President and CFO, +46-8-553 998 11, mobile +46-70-569 66 33 Bodil Eriksson, Executive Vice President, Corporate Communications and Investor Relations, +46-8-553 998 17, mobile +46-70-629 66 34