Contents BUSINESS REVIEW Axfood at a glance 1 CEO’s message 4 Mission, goals and strategy 8 Private labels 11 Market and trends 14 Hemköp 16 Willys 18 PrisXtra 20 Axfood Närlivs 22 Dagab 24 The flow from supplier to store shelf 25 Corporate Social Responsibility 35 Corporate governance 35 A word from the Chairman 44 Board of Directors 46 Executive Committee FINANCIAL STATEMENTS 50 Administration report 54 Risks and risk management 58 Statement of comprehensive income, Group 59 Comments on the Statement of comprehensive income and Statement of financial position 60 Statement of financial position, Group 62 Statement of cash flows, Group 63 Statement of changes in equity, Group 63 Comments on the Statement of cash flows and Statement of changes in equity 64 Income statement and balance sheet, Parent Company 65 Cash flow statement and shareholders’ equity, Parent Company 66 Notes 76 Information on employees; compensation of directors, the CEO and other senior executives 89 Proposed disposition of profit 90 Audit report 92 Several-year overview 94 Axfood share data 96 Annual General Meeting 97 Financial information and Investor Relations 98 GRI table 100 Definitions and glossary Addresses Axfood is a Swedish company governed by Swedish law. All monetary amounts stated herein are in Swedish kronor. Millions of kronor are abbreviated as SEK m, billions as SEK bn and thousands as KSEK. Figures in parentheses pertain to 2008, unless stated otherwise. Market and competitive data are Axfood’s own estimates, unless reference is made to a specific source. These estimations are based on the best and most recent data available from published sources in the public sector, the consumer goods industry and competitors. Axfood reports in conformity with the Global Reporting Initiative (GRI) guidelines for sustainability work and applies level B in its report for 2009.