Interim Report operations during the period january 1 - september 30, 1999

[REMOVED GRAPHICS] INTERIM REPORT OPERATIONS DURING THE PERIOD JANUARY 1 - SEPTEMBER 30, 1999 % change compared with preceding year - Net sales SEK 3,815 m (3,559) 7.2 % - Operating income SEK 113.0 m (112.9) 0.1 % - Income before tax SEK 113.6 m (114.3) -0.6 % - Operating margin 3.0 % 3.2 % - Earnings per share after full tax SEK 3.27 (3.29) - Four new supermarkets opened and one acquired - Two new bakeries - Six supermarkets refurbished Hemköp continues to increase its sales volume and market share. Four new supermarkets opened during the period, in Västerås, Valbo, Oskarshamn and Lerum. An additional supermarket was acquired in Borlänge and opened in October. Hemköp's new superstore concept, Hemköp Plus, was introduced in connection with the opening of a new supermarket in Valbo at the end of May. The concept will be successively implemented at a number of existing supermarkets including one in Linköping which will be opened in November. Sales and earnings Hemköp's net sales increased during the period by 7.2 percent, to SEK 3,815 m (3,559), entailing growth in volume of 6.4 percent. According to preliminary industry statistics, volume increased by approximately 2 percent for the industry as a whole during the period. Hemköp's volume growth is mainly attributable to new supermarkets, however, comparable units have also contributed to the increase. Operating income for the period amounted to SEK 113.0 m (112.9), resulting in an operating margin of 3.0 percent (3.2) for the period. Earnings were charged with costs for implementation of the new super-store concept in Valbo and start-up costs for new supermarkets, most of which were incurred during the second and third quarters. Net financial items amounted to SEK 0.6 m, compared with SEK 1.4 m a year ago, and income after financial items therefore totaled SEK 113.6 m (114.3). Capital expenditures and expansion Capital expenditures totaled SEK 102.1 m (90.7). Four new supermarkets were opened and two new bakeries were established during the period. Six supermarkets were refurbished, three of which were expanded with additional retail space. Two supermarkets are currently being refurbished, one of which is undergoing an expansion. During the last twelve months, a total of eight new supermarkets were opened and two bakeries established. Another supermarket was acquired in September and underwent extensive refurbishment. It was opened in late October. 15 supermarkets were equipped with Hemköp's new, computerized checkout system during the period, which has now been installed in 63 of Hemköp's 100 supermarkets. The project will be concluded next year. Financial position The Group's liquid assets totaled SEK 89.2 m (113.5) as per September 30. Net interest-bearing assets amounted to SEK 71.5 m (98.4). The equity ratio was 38.2 percent (36.9) and the debt-equity ratio was 0.1 (0.1). Number of employees The average number of full-year employees was 2,640 (2,457). The increase is mainly attributable to staff at new supermarkets. Parent company Parent company sales amounted to SEK 16.7 m (22.3) for the period, and income after financial items was SEK 0 (0). Falun, Sweden, October 27, 1999 Hemköpskedjan AB (publ.) Håkan Matz President and CEO The interim report has not been subject to examination by the Company´s auditors. The charts above show the quarterly trend in sales and operating income for 1999 compared with 1998 and 1997. Financial calendar for Hemköpskedjan Year-End Report February 14, 2000 Annual General Meeting May 11, 2000 [REMOVED GRAPHICS]1) In the interim report, tax is calculated using a standard tax rate of 28%. [REMOVED GRAPHICS] 1) Of which, SEK 17.7 m (15.1) in interest-bearing liabilities and SEK 519.9 m (466.3) in noninterest-bearing liabilities. [REMOVED GRAPHICS] [REMOVED GRAPHICS] For additional information:Hemköpskedjan AB (publ.) +46 23 589 00 Håkan Matz, President and CEO Dan Lundqvist, Vice President and CFO Bengt Andersson, Vice President, Marketing ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/10/27/19991027BIT00900/bit0001.doc http://www.bit.se/bitonline/1999/10/27/19991027BIT00900/bit0002.pdf