\CA
Joint ventures
ICA
Net sales
Operating income
Net income
Ahold
Annual Report 2010
Performance by segment continued
Group at a glance
Performance
Governance
Fi nancials
Investors
The information presented in this section relating to ICA and JMR (on a 100 percent basis)
represents amounts that are not consolidated in the Company's financial statements since
Ahold's investment in ICA and JMR is accounted for using the equity method described in
Notes 3 and 14 to the consolidated financial statements.
Established: 1917
Joint venture with Ahold formed: 2000
Brands: In Sweden, ICA Nara, ICA
Supermarkt, ICA Kvantum, and Maxi ICA
Hypermarket. In Noiway, ICA Nar, ICA
Supermarked, ICA Maxim, and Rimi.
In the Baltics, Rimi Hypermarket, Rimi
Supermarket, SuperNetto, and
Saastumarket.
Market area: Sweden, Norway, Estonia,
Latvia, and Lithuania, in Europe
Store formats: Supermarkets, compact
hypermarkets, convenience stores, home
shopping and financial services through its
consumer bank
Own brands include: ICA, ICA Gott Liv,
ICA Selection, I love eco, Skona, ICA
Cook Eat, Euroshopper, and ICA Home
ICA is a food retail group, headquartered in Stockholm, Sweden. As of year-end 2010, ICA
served 2,270 retailer-owned and company-operated retail food stores in Sweden, Norway, and
the Baltic States. The company also provides limited consumer financial services in Sweden
through its bank.
Ahold owns a 60 percent stake in ICA AB, which in turn owns the ICA group. The other 40
percent stake in ICA is held by Hakon Invest AB, a Swedish company listed on the Stockholm
Stock Exchange. Under the shareholders' agreement with Hakon Invest AB, Ahold's 60 percent
shareholding stake in ICA does not entitle it to unilateral decision-making authority over ICA,
because the agreement provides that strategic, financial and operational decisions will be made
only on the basis of mutual consent. The shareholders' agreement also provides for a call and put
option exercisable by Ahold or Hakon Invest AB as the case may be, if there is a change of
control over the other party.
In 2010, ICA introduced a new pharmacy chain called Cura inside its Swedish Maxi ICA
hypermarkets. The company opened 30 of these pharmacies over the course of the year, each
providing a wide range of prescription and non-prescription medication, trained pharmacy staff,
convenient locations, and extended opening hours.
In Norway, the store rebranding program continued, with the company rolling out the new Rimi
store format that emphasizes its low prices while providing a brighter, more modern and inspiring
store environment. In 2010, 108 stores were converted, bringing the total number of converted
Rimi stores to 184.
In the Baltics, the Rimi stores launched a major, market-wide value campaign in April, cutting
prices on many products as part of its efforts to further improve the company's price image.
In 2010, net sales were €9.8 billion, an increase of 0.9 percent at constant exchange rates.
The increase was due to a continuing solid performance in Sweden. Sales decreased in Norway,
which is under pressure from fierce competition, and in the Baltic countries, which were heavily
impacted by the economic downturn, but started to recover in the second half of the year.
In 2010, operating income increased €52 million to €304 million and the operating margin was
3.1 percent. At constant exchange rates, operating profit increased €24 million. The increase
was due to a strong performance in Sweden and improved, though still negative, operating
income in the Baltics. It was partially offset by continued negative results in Norway.
In 2010, net income decreased €92 million to €54 million. Improved operating income and a
positive impact from changes in exchange rates were offset by higher income taxes due to a
provision related to a tax claim by the Swedish tax authorities and a provision against deferred
tax assets in Norway.
More about ICA online:
www.ica.se
