ICA AB interim report January - September 2011

Solna, Sweden, 9 November, 2011

Higher net sales but lower income after goodwill impairment

Third quarter

• Net sales for the third quarter amounted to SEK 24,008 million (23,505), up 2.1 percent. At constant exchange rates net sales increased by 2.5 percent.
• Operating income excluding capital gains and impairments amounted to SEK 947 million (934), up 1.4 percent.
• An impairment of goodwill has been made in ICA Norway based on the company’s new business plan. The goodwill impairment affected the Group’s income negatively by SEK 592 million. Operating income amounted to SEK 330 million (940).
• Income after net financial items amounted to SEK 235 million (859).
• Net income for the third quarter amounted to SEK -2 million (644).

Nine-month period

• Net sales for the nine-month period amounted to SEK 70,258 million (69,367), up 1.3 percent. At constant exchange rates net sales increased by 3.1 percent.
• Operating income excluding capital gains and impairments amounted to SEK 2,160 million (2,238), down 3.5 percent.
• The goodwill impairment in ICA Norway of SEK 592 million, made in the third quarter, is included in the Group’s income for the nine month period. Operating income amounted to SEK 1,558 million (2,206).
• Income after net financial items amounted to SEK 1,303 million (1,946).
• Net income for the nine-month period amounted to SEK 684 million (699). The nine-month period of 2010 was charged with a tax expense of SEK 747 million for a tax dispute for the years 2001–2003.

Extract from CEO comment – Kenneth Bengtsson, CEO and President ICA AB: “The ICA Group delivered an improved operating income excluding capital gains and impairments for the third quarter even though all our markets continued to see tight competition and consumer restraint in an uncertain economy. During the quarter, ICA Sweden’s net sales increased while its operating income fell. Based on the new business plan for ICA Norway, a goodwill impairment of the company was made in the third quarter. Excluding the impact of the goodwill impairment, ICA Norway’s operating loss was reduced versus the third quarter last year. Rimi Baltic’s and ICA Bank’s operating results improved and ICA Real Estate continued its stable development. Sales for the ICA Group rose by 2.5 percent at constant exchange rates mainly due to higher sales by ICA Sweden.”

For the entire report, with a complete comment by the CEO and description of the financial results, please see the attached pdf-file.

For more information:

Kenneth Bengtsson, President and CEO,ICA AB, phone: +46 8 561 502 58

ICA’s press office, phone +46 70 253 66 60

About ICA
The ICA Group (ICA AB) is one of the Nordic region’s leading retail companies, with around 2,150 of its own and retailer-owned stores in Sweden, Norway and in the three Baltic states. The Group includes ICA Sweden, ICA Norway, Rimi Baltic and ICA Real estate. ICA also offers financial services to Swedish customers through ICA Banken. ICA AB is a joint venture 40% owned by Hakon Invest AB and 60% by Royal Ahold N.V. of the Netherlands. According to a shareholder agreement, Royal Ahold and Hakon Invest jointly share controlling influence over ICA AB. Through Royal Ahold, ICA AB is part of an international retail network. For more information, please visit http://www.ica.se