Joint ventures
IC\
50
Performance by segment (continued)
Highlights JMR
ICA
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JMR
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Ahold Annual Report 2012
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Highlights ICA
Per Strömberg joined ICA as CEO, starting April 1, 2012.
He succeeded Kenneth Bengtsson, who had been CEO for the
past 11 years
ICA launched a new group strategy in September, based on the
vision of making every day a little easier for customers
ICA streamlined its Norwegian operations by divesting the lease
agreements and properties of Norwegian ICA Maxi to Lagopus
The Swedish Administrative Court of Appeal ruled in a tax dispute
involving ICA, resulting in a total tax claim to ICA of SEK 1.3 billion
In a very challenging economic environment, JMR was able to
reinforce its price position and competitiveness and strengthen of
Pingo Doce's position through major commercial campaigns
JMR successfully managed operating costs despite high inflation
in a number of areas
Key figures
ICA
JMR
Number of stores at year end 2012
2,209
374
Percentage shares held by Ahold
at year end 2012
60%
49%
On 100% stake basis:
Net sales million)
11,125
3,295
Net income million)
118
10
ICA is a food retail group headquartered in Stockholm, Sweden.
As of year-end 2012, ICA served 2,209 retailer-owned and company-
operated retail stores in Sweden, Norway and the Baltic States.
The company also provides consumer financial services in Sweden
through its bank.
Ahold owns a 60% stake in ICA AB, which in turn owns the ICA group.
The other 40% stake in ICA is held by Hakon Invest AB, a Swedish
company listed on the Stockholm Stock Exchange.
Ahold and Hakon Invest AB share equal voting power in ICA AB. In
2012, ICA reached an agreement with Lagopus Eiendomsutvikling AS,
a consortium of four companies, regarding the transfer of lease
agreements and properties in Norway. As part of this agreement, ICA
will close all of its ICA Maxi stores in Norway. This agreement follows
ICA's announcement in 2011 that it would divest its Norwegian ICA
Maxi stores and their properties.
On September 4, 2012, in line with its aim to focus the execution of its
reshaping retail growth strategy on businesses the company controls,
Ahold announced that it was exploring strategic options regarding its
holding in ICA and had initiated a review that was expected to take
6-12 months. On February 11, 2013, we announced that we reached
an agreement with Hakon Invest of Sweden to sell our 60% stake for
SEK 21.2 billion in cash (which includes ICA's 2012 dividend of SEK
1.2 billion). The transaction, subject to regulatory approvals as well as
approval by the ICA's Retailers Association (ICA Forbundet) for the
financing of the transaction, is expected to be completed in the middle
of 2013.
Net sales
In 2012, net sales were €11.1 billion, an increase of 2.0% at constant
exchange rates. The increase was due to a solid performance in
Sweden and the Baltic States, as well as higher revenues by ICA Bank.
Net sales in Norway decreased compared to last year.
Operating income
Operating income increased by €45 million to €383 million at an
operating margin of 3.4%. At constant exchange rates, operating profit
increased €30 million, mainly due to an improved performance in
Sweden and in the Baltic States.
Net income
In 2012, net income decreased by €86 million to €118 million. ICA's
results were negatively impacted by a tax provision recognized by the
company following an adverse court ruling (the impact on Ahold's
results was €90 million).
ww w.a hold .com/I CA
In 1992, Ahold partnered with Jerónimo Martins, SGPS, S.A. in the
joint venture JMR, which is headquartered in Lisbon, Portugal. Ahold
holds 49% of the shares in JMR and shares equal voting power on
JMR's board of directors with Jerónimo Martins, SGPS, S.A. At the end
of 2012, JMR owned and operated 374 stores in Portugal under the
brand name Pingo Doce, three more than in 2011
Net sales
In 2012, net sales increased by 2.9% to €3.3 billion, driven by sales
from new stores. Sales growth was impacted by lower overall
consumption in Portugal, due to the euro crisis and government
measures. Halfway through 2012, JMR started an aggressive and
successful promotional campaign that helped it to remain competitive
and gain customers.
Operating income
In 2012, operating income decreased by €36 million to €56 million,
resulting in an operating margin of 1.7%. Intense promotional pressure
and the buying behavior of value-focused customers negatively
impacted operating margin.
Net income
In 2012, net income decreased by €22 million to €10 million, mainly
as a result of lower operating income.
ww w.a hold .com/Pi ngo- Doce
