AXFOOD AT A GLANCE Axfood’s business mission is to create, develop and operate successful grocery store chains – wholly owned or in franchise form. Axfood aspires to be the challenger in the Nordic retail food market through distinct and unique customer offerings. Presenting Axfood Axfood conducts food retail and wholesale trade in Sweden. The Group’s retail operations are conducted through the Group-owned Willys and Hemköp stores, comprising 224 stores in all. In addition, Axfood collaborates with a large number of proprietor-run stores that are tied to Axfood through agreements. These include stores within the Hemköp and Willys chains as well as stores run under the Handlar’n and Tempo profi les. In all, Axfood collaborates with more than 500 proprietor-run stores. Wholesale business is conducted through Dagab and Axfood Närlivs. Axfood is quoted on the OMX Nordic Exchange, Large Cap list. Axel Johnson AB is the principal owner with approximately 45% of the shares. Axfood has an approximate 15.4% market share in Sweden. Market shares, largest competitors in Sweden 2006, % ¦ Axfood 15.4% ¦ Coop 24.5% ¦ Lidl 2.7% ¦ Ica 47.5% ¦ Bergendahls 8.4% ¦ Netto 1.5% Source: ICA Nyheter, Dec. 2006. Administration & IT Corporate Communications Human Resources Structure/Establishment Products & Purchasing Hemköpskedjan AB Willys AB Dagab AB Axfood Närlivs AB Finance, accounting & control, safety, IT, overall administration IR, internal & external communication, branding Training & leadership development Structure & store establishment Central purchasing, product assortment development, private labels, quality assurance, consumer contact Executive Committee CEO Organizational structure Axfood’s organization is characterized by few decision-making levels and strong focus on low administrative costs. At the central level the Group achieves economies of scale by combining such functions as purchasing, private label products, logistics, IT, fi nance administration, human resources and leadership development. The management teams of the individual chains are responsible for store operations, marketing, product assortment and pricing strategies. Axfood’s store managers and collaborating proprietors work in direct daily contact with their customers and are responsible for making sure that their stores are appealing, well-stocked, and for treating customers in a professional manner that reflects the profi le of their respective stores.