Axfood — Interim / Quarterly Report 2007

Jul 18, 2007

Interim Report Axfood AB (publ.)

for the period 1 January–30 June 2007

• Axfood's consolidated sales amounted to SEK 14,335 m (14,198) during the first six months of the year, an increase of 1.0%.
• Like-for-like sales rose 0.6%. Retail sales for Axfood's wholly owned stores decreased by 0.1% during the period.
• Operating profit for the period January–June was SEK 537 m (501).
• Profit after financial items for the period was SEK 520 m (491).
• Profit after tax for the period was SEK 374 m (353), and earnings per share were SEK 7.14 (6.57).
• The yearly forecast for 2007 remains intact.

Key ratios

.

	Apr.-June		Jan.-June	Jan.-Dec.
SEK m	2007	2006	2006	2006	2006
Net sales	7 392	7 378	14 335	14 198	28 808
Operating profit	279	275	537	501	1 204
Operating margin, %1	3,8	3,7	3,7	3,5	3,9
Profit after financial items	267	268	520	491	1 183
Profit after tax	192	192	374	353	852
Earnings per share, SEK2	3,67	3,62	7,14	6,57	16,03
Equity ratio, %	-	-	28,3	33,3	39,8
Return on capital employed, %	-	-	44,2	33,5	37,3
Return on shareholders' equity %	-	-	46,8	30,8	32,5
Net asset value per share, SEK	-	-	33,26	37,66	46,12

1) Excluding compensation of SEK 89 m from the settlement with the Vi retailers association for the full year 2006.

2) Before and after dilution. The number of shares is reduced by the number of treasury shares held.

CEO's comments

Axfood´s earnings for the first half of the year were strong. However, sales growth is not satisfactory so we will take measures in order to improve the development .

Consolidated operating profit for the first half of 2007 was SEK 537 m (501), and we reached an EBIT margin of 3.7% (3.5%). Sales were slightly higher than the corresponding period in 2006, totalling SEK 14,335 m (14,198).

Operating profit for the second quarter totalled SEK 279 m (275), with an operating margin of 3.8% (3.7%). Sales for the second quarter totalled SEK 7,392 m (7,378).

Accumulated sales for the first two quarters of 2007 amounted to SEK 10,130 m on a like-for-like basis (10,072). Like-for-like sales during the second quarter totalled SEK 5,142 m (5,161).

More than 90% of Axfood's stores in both the Hemköp and Willys chains are performing according to plan with respect to both sales and earnings. However, mounting competition in certain local markets – mainly through new establishment – is having an adverse impact on total sales.

Willys' sales rose 1.5%. Operating profit was SEK 303 m (255). At the close of the period the Willys chain comprised 144 stores. Like-for-like sales rose 1.0% for the first half as a whole.

To better meet customer demands, we have adjusted the price and product-line strategy for Hemköp. We are now creating a better price mix, which is giving the chain a more value-for-money profile. We are sticking to our previously made decision to primarily run small stores in the chain under franchise agreements. Operating profit for Hemköp totalled SEK 39 m (30). Like-for-like sales decreased by 0.5%. During the autumn, Hemköp will roll out its new customer card nationwide. The initial launch of the customer card in Sweden's Norrland province during the early summer has exceeded expectations.

After the close of the second quarter, a Vi store was acquired at Skanstull in Stockholm, which will be converted to Hemköp after possession has taken place on 30 August.

Axfood Närlivs showed a continued steady and consistent earnings ability during the first half of the year. The sales increase for the first half of the year was 0.5%.

Axfood's logistics company Dagab has focused on improving delivery reliability towards the stores. This has affected operating profit. The change made in the fruit and vegetable operations has now been completed, and today we have a single logistics partner for fruits and vegetables.

In certain EU countries, private label products account for roughly 40% of total sales of retail food products. Axfood's private label share today is slightly more than 20%, making us the best in Sweden at giving customers this increased freedom of choice. Our goal is to reach a 25% private label share.

Raw material prices are rising around the world. Higher raw material prices and higher payroll costs are having a strong impact on certain sectors and will most likely also affect consumer prices. Axfood will continue to work actively on keeping prices down for its customers.

The yearly forecast we have made for 2007 of an operating profit that is level with 2006, excluding the compensation from the Vi retailers association, remains intact.

Anders Strålman President and CEO

Important events during the second quarter:

• A new Super-Willys was opened in Sickla, just outside Stockholm.
• Two Willys hemma stores were sold.
• In April, the new purchasing and distribution organization for fruits and vegetables was started according to plan.

Important events earlier in the year:

• Contract negotiations resulted in a three-year agreement.
• One Willys store was moved to a new location in Sundsvall.
• A new, wholly owned Hemköp store was opened in Örebro.
• Two Hemköp franchise stores were opened, in Saltsjöbaden and in Lännersta.
• Karin Hygrell-Jonsson assumed her duties as new CFO of Axfood AB on 1 May 2007.

Important events after the end of the period:

An agreement was signed to acquire a Vi store at Skanstull in Stockholm, with approximately SEK 120 m in annual sales.

Change in store structure, Jan.-June 2007

		Establish		Sales/	Conversions
	Dec. 2006	ment	Acquisitions	closures	to/from	June 2007
Hemköp	76	1	-	-	-	77
Willys1)	148	2	-	-6	-	144
Total, wholly owned	224	3	-	-6	-	221
Hemköp franchises	82	-	2	-	-	84

1) Of which, Willys hemma 41 (43).

	Apr.-June		Like-for-like	Jan.-June		Like-for-like
	2007, SEK m	% 1)	sales %1)	2007, SEK m	% 1)	sales %1)
Hemköp	1 392	-4,1	-1,2	2 792	-4,1	-0,5
Hemköp franchise	937	9,3	2,3	1 795	9,8	2,9
Hemköp total	2 329	0,8	0,2	4 587	0,9	0,7
Willys total	3 885	0,0	-0,1	7 590	1,5	1,0
Total	6 214	0,3	0,0	12 177	1,3	0,9

Net sales, own and franchise stores

1) % change compared with the corresponding period a year ago.

Sales and earnings for the Axfood Group

Consolidated wholesale and retail sales for the Axfood Group totalled SEK 14,335 m (14,198) for the period January–June, an increase of 1.0%. Store sales for the Axfood Group (in wholly owned stores and in Hemköp franchises) amounted to SEK 12,177 m (12,022), an increase of 1.3%. Sales by Axfood's wholly owned stores in Sweden decreased during the period by 0.1%, with a 0.6% rise in like-for-like sales.

Operating profit for the period January–June was SEK 537 m (501). The operating margin for the period was 3.7% (3.5%).

Net financial items during the period January–June totalled SEK -17 m (-10). Profit after financial items was SEK 520 m (491). The margin after financial items was 3.6% (3.5%). Profit after tax was SEK 374 m (353).

Financial position

Cash flow from operating activities for the period before paid tax was SEK 752 m (849). Paid tax amounted to SEK -237 m (-524). Cash and cash equivalents held by the Group amounted to SEK 264 m, compared with SEK 369 m in December 2006. Interest-bearing assets at the end of the period amounted to SEK 302 m, compared with SEK 406 m in December 2006. Interest-bearing liabilities and provisions totalled SEK 1,104 m at the end of the period, compared with SEK 467 m in December 2006

The equity ratio was 28.3%, after the dividend payout of SEK 1,049 m, compared with 39.8% in December 2006.

Share repurchases had a cash flow effect of SEK – m (-363).

Capital expenditures

Total capital expenditures during the period amounted to SEK 225 m (302). Of these, SEK 122 m (184) pertained to non-current assets in retail operations, SEK 34 m (40) to non-current assets in wholesale operations, and SEK 63 m (74) to IT.

Employees

The Axfood Group had an average of 6,873 employees (7,050) during the period January–June. Of the Group's employees, approximately 70% work in stores and slightly more than 20% work in the wholesaling operation.

Store operations

Hemköp

Sales for Hemköp's stores – both wholly owned and franchises – rose 0.9% during the period January–June. Sales for wholly owned Hemköp stores during the period totalled SEK 2,793 m (2,912), a decrease of 4.1%. The deviation is mainly due to previous structural changes. Like-for-like sales for wholly owned stores decreased by 0.5% during the same period.

Sales for franchise stores totalled SEK 1,795 m (1,634), an increase of 9.8%, with a 2.9% rise in like-for-like sales.

Sales for Axfood's wholly owned stores during the second quarter totalled SEK 1,392 m (1,453).

Operating profit for the period January–June was SEK 39 m (30). The operating margin for the period was 1.4% (1.0%). Operating profit for the second quarter was SEK 20 m (11). The earnings improvement can be credited to higher gross margins and lower overheads.

Hemköp's private label share (incl. franchise stores) was 13.3% as of May (14.3%).

During the period, one store was opened in Örebro and two new franchise stores were opened, in Lännersta and Saltsjöbaden. A store in Helsingborg was reopened following a fire during the spring. The Hemköp chain has 77 wholly owned stores and 84 franchise stores, for a total of 161 stores in all. In accordance with Axfood´s strategy to grow in the major metropolitan areas, after the end of the period, Hemköp acquired the Vi-store at Skanstull in Stockholm.

The introduction of Hemköp's new customer card is planned for the autumn. The aim is to boost customer loyalty and thereby sales and market share.

Willys (including Willys hemma)

Sales for Willys totalled SEK 7,590 m (7,476) during the period January–June, an increase of 1.5% compared with a year earlier. Like-for-like sales rose 1.0% during the same period. Sales for the second quarter totalled SEK 3,885 m (3,884). The slightly weaker increase in growth for the period is attributable to a slower rate of establishment and tougher competition, particularly in the major metropolitan areas.

Operating profit for the period was SEK 303 m (255). Profit for the period included a one-time effect of SEK 19 m, attributable to the valuation of store inventories. The operating margin was 4.0% (3.4%). Operating profit for the second quarter was SEK 163 m (145).

The private label share as of May was 23.8% for Willys (24.1%) and 27.5% for Willys hemma (27.7%).

During the period, two new Willys stores were established, two stores were closed, and two were sold. The Willys chain comprises 144 wholly owned stores, including 41 Willys hemma stores, plus three Willys stores run under franchises.

Axfood Partihandel (wholesaling) – Dagab and Axfood Närlivs

Dagab's sales during the period January–June totalled SEK 10,462 m (10,089). Sales for the second quarter totalled SEK 5,404 m (5,288). Operating profit for the period was SEK 55 m (103). The operating margin for the period was 0.5% (1.0%). Operating profit for the second quarter was SEK 18 m (55). Earnings were affected by the restructuring of the inventory operations, with a new highrise warehouse in Jordbro and a new cold storage warehouse in Borlänge. Dagab has been gradually converted to a logistics partner for Axfood's wholly owned stores and franchises, and virtually all of its deliveries are now made to Axfood's own store profiles.

Sales for Axfood Närlivs amounted to SEK 2,636 m (2,623) during the period January–June. Sales for the second quarter totalled SEK 1,434 m (1,420). Starting on 1 January 2007, Axfood Närlivs has taken over customer responsibility for external customers (such as Tempo) from Dagab. The comparison figure for sales has been adjusted accordingly. Axfood Närlivs' operating profit for the period was SEK 42 m (45). The operating margin for the period was 1.6% (1.7%). Operating profit for the second quarter was SEK 30 m (35).

Significant risks and uncertainty factors

In the course of it operations the Axfood Group is exposed to both financial risks and business risks. Financial risks include liquidity risk, interest rate risk and currency risk, while business risks include competitive risk and operating risk.

In the immediate future, higher raw material prices and higher transport costs could have an impact on the Group's purchasing prices.

In the course of its safety analysis work, Axfood has identified a total loss, such as that resulting from a fire at one of the central warehouses in Jordbro or Backa, as one of the greatest operating risks that the company must manage. Major emphasis is put on preventive work, and the organization for this is well-developed, as is the Company's planning to maintain operating continuity in the event of unforeseen events.

The Parent Company is responsible for the Group's external financing, and through this it is exposed to liquidity, interest rate and currency risks. The goal of Axfood's financial management is to limit the short-term impact of fluctuations in the financial markets on the Group's earnings and cash flow. Toward this end, Axfood has a finance policy that manages liquidity, interest rate and currency risks. In other respects, the Parent Company conducts holding company activities for the Group, including central functions, and is not exposed to risks other than indirectly via its subsidiaries.

Axfood works continuously with risk identification and assessment. A detailed account of the risks that affect the Group can be found in the 2006 Annual Report.

Environmental impact

Axfood takes a long-term perspective in its work with environmental matters and allows environmental issues to remain coupled to the business.

In cooperation with the trade organization Svensk Dagligvaruhandel, Axfood has taken the initiative on an industry-wide standard for climate labelling of products in the retail food trade. Together with other members of this trade organization, work is also under way on creating long-term goals for reducing carbon dioxide emissions. Axfood is also participating in a pilot study using biogaspowered delivery trucks.

In its day-to-day work, Axfood focuses on three primary areas in an effort to reduce its environmental impact: transports to and from stores, source sorting of waste at offices and in stores, and electricity consumption in offices, warehouses and stores.

Parent Company

Other operating revenue for the Parent Company during the period January–June amounted to SEK 79 m (77). After selling and administrative expenses of SEK 97 m (101) and SEK -6 m (2) in net financial items, the result after financial items was SEK -24 m (-22). Capital expenditures during the period amounted to SEK 3 m (3).

Cash and cash equivalents held by the Parent Company totalled SEK – m, compared with SEK 1 m in December 2006. Interest-bearing net debt was SEK 847 m at the end of the period, compared with SEK 744 m in December 2006.

No shares were repurchased during the period January–June. (Share repurchases affected the Parent Company's and Group's cash flow in the preceding year by SEK -363 m.) The average holding of treasury shares during the period was 2,116,150. Axfood's 2007 Annual General Meeting resolved to reduce the share capital by SEK 10.6 m through cancellation of all treasury shares. This cancellation is planned to take place during the third quarter.

The Parent Company has no significant transactions with related parties, other than transactions with subsidiaries.

Accounting principles

This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and RR 31 Interim Financial Reporting for Groups. The same accounting principles and methods of calculation have been used as in the most recent annual report.

In order to prepare the financial statements in accordance with generally accepted accounting principles, the Board and company management make estimations and assumptions that affect the Company's result and position as well as other disclosures in general. These estimations and assumptions are based on historical experience and are reviewed on a regular basis.

Starting on 1 January 2007, Axfood applies IFRS 7 Financial Statements: Disclosures and the IAS 1 Amendment: Presentation of Financial Statements. IFRS 7 entails no change in the accounting and valuation of financial instruments. However, it does entail the addition of certain disclosure requirements compared with the previous requirements under IAS 32. Among other things, it entails an improvement in the current disclosure requirements with respect to exposures and the management of risks from financial instruments. In view of IFRS 7, the disclosure requirements of IAS 1 have been amended. Among other things, descriptions must be provided with respect to the capital base, external capital requirements and the extent to which these have been met or not. In addition to IFRS 7 and the IAS 1 Amendment are four IFRIC interpretations – IFRIC 7, 8, 9 and 10. IFRS 7, the IAS 1 Amendment and IFRIC interpretations 7, 8, 9 and 10 have no effect on the Axfood Group's income statement, balance sheet, cash flow statement or shareholders' equity.

Parent company

The same accounting principles and bases of calculation as in the most recent annual report have been used. The Parent Company complies with the Swedish Annual Accounts Act and Swedish Financial Accounting Standards Council recommendation RR 32:05 – Reporting for Legal Entities. Application of RR 32 entails that in interim reporting for legal entities, the Parent Company is to apply all IFRSs and statements approved by the EU as far as possible within the framework of the Swedish Annual Accounts Act, the Pension Obligations Vesting Act, and taking into account the connection between accounting and taxation.

Future outlook

The yearly forecast that was made for 2007, for an operating profit that is level with 2006, excluding compensation from the settlement with Vi, remains intact.

Next reporting date

The interim report for the period January–September 2007 will be released on 17 October 2007.

This half-year interim report provides a fair overview of the Parent Company's and Group's operations, position and earnings, and describes significant risks and uncertainty factors facing the Parent Company and the companies that belong to the Group.

Stockholm, Sweden, 18 July 2007

Göran Ennerfelt Marcus Storch Chairman of the Board Vice Chairman of the Board Antonia Ax:son Johnson Peggy Bruzelius Maria Curman Gunnar Söderling Annika Åhnberg Sven-Erik Brandt Employee representative Ulla-May Iwahr Rydén Inger Sjöstrand Employee representative Employee representative

Anders Strålman President and CEO

This interim report has not been reviewed by the Company's auditors.

For further information, please contact:

Anders Strålman, President and CEO, mobile +46-70-837 88 37 Karin Hygrell-Jonsson, CFO, mobile +46-70-662 69 70 Anne Rhenman, IRO, +46-8-553 998 13, mobile +46-70-280 64 59

Financial reports, Group

Net sales per business unit

		Apr.-June			Jan.-Dec.
SEK m	2007	2006	2007	2006	2006
Hemköp	1 406	1 465	2 819	2 937	5 829
Willys	3 885	3 884	7 590	7 476	15 115
Axfood Närlivs1	1 434	1 420	2 636	2 623	5 465
Dagab2	5 404	5 288	10 462	10 089	20 572
Other3	274	235	535	469	947
Internal sales4	-5 011	-4 914	-9 707	-9 396	-19 120
Net sales, total	7 392	7 378	14 335	14 198	28 808

Operating profit for the period (EBIT), broken down by business unit

	Apr.-June			Jan.–June	Jan.–Dec.
SEK m	2007	2006	2007	2006	2006
Hemköp	20	11	39	30	79
Willys	163	145	303	255	558
Axfood Närlivs	30	35	42	45	108
Dagab	18	55	55	103	226
Other3	48	29	98	68	233
Operating profit for the period, total	279	275	537	501	1 204

1) Of which, distributed sales SEK 2,123 m (2,117) for January-June and SEK 4,365 m for January-December 2006. Sales for 2006 have been adjusted, since starting on 1 January 2007, Axfood Närlivs has taken over customer responsibility for external customers (such as Tempo) from Dagab.

2) Of which, distributed sales SEK 6,838 m (6,605) for January-June and SEK 13,428 m for January-December 2006.

3) Includes joint-Group functions, the support company Axfood IT, and in the preceding year, the proceeds from the settlement with Vi, totalling SEK 89 m.

4) Of which, Dagab SEK 9,248 m (9,014) for January-June and SEK 18,340 m for January-December 2006. Sales for 2006 have been adjusted, since starting on 1 January 2007, Axfood Närlivs has taken over customer responsibility for external customers (such as Tempo) from Dagab.

Condensed income statement

		Apr.-June Jan.-June			Jan.-Dec.
SEK m.	2007	2006	2007	2006	2006
Net sales	7 392	7 378	14 335	14 198	28 808
Cost of goods sold	-6 372	-6 351	-12 324	-12 236	-24 760
Gross profit	1 020	1 027	2 011	1 962	4 048
Selling/administrative expenses, etc.	-741	-752	-1 474	-1 461	-2 844
Operating profit	279	275	537	501	1 204
Net financial items	-12	-7	-17	-10	-21
Profit after financial items	267	268	520	491	1 183
Tax	-75	-76	-146	-138	-331
Net profit for the period	192	192	374	353	852
Operating profit includes
depreciation/amortization of	117	117	236	232	474
Earnings per share, SEK	3,67	3,62	7,14	6,57	16,03

Condensed balance sheet
-------------------------	--	--

SEK m	30/6/2007	30/6/2006	31/12/2006
Assets
Goodwill	1 131	1 131	1 131
Interest-bearing receivables	25	–	24
Financial non-current assets	29	31	31
Other non-current assets	1 704	1 733	1 736
Total non-current assets	2 889	2 895	2 922
Inventories	1 483	1 469	1 473
Accounts receivable ― trade	604	525	514
Interest-bearing receivables	13	–	13
Other current assets	904	874	784
Cash and bank balances	264	214	369
Total current assets	3 268	3 082	3 153
Total assets	6 157	5 977	6 075
Shareholders' equity and liabilities
Equity attributable to equity holders of the parent	1 745	1 988	2 420
Total shareholders' equity	1 745	1 988	2 420
Interest-bearing non-current liabilities	587	384	385
Noninterest-bearing non-current liabilities	162	156	157
Total non-current liabilities	749	540	542
Current interest-bearing liabilities	517	421	82
Accounts payable — trade	1 709	1 685	1 753
Other current noninterest-bearing liabilities	1 437	1 343	1 278
Total current liabilities	3 663	3 449	3 113
Total shareholders' equity and liabilities	6 157	5 977	6 075
Contingent liabilities	28	31	29
Pledged assets	2	3	2

Condensed cash flow statement

	Jan.-June		Jan.-Dec.
SEK m	2007	2006	2006
Operating activities
–Cash flow from operating activities before changes in working
capital before paid tax	755	734	1 693
–Paid tax	-237	-524	-684
–Changes in working capital	-3	115	151
Cash flow from changes in working capital	515	325	1 160
Investing activities
–Company acquisitions, net	2	236	236
–Acquisitions of non-current assets, net	-206	-287	-559
–Reduction of financial non-current assets	1	-	2
Cash flow from investing activities	-203	-51	-321
Financing activities
–Change in interest-bearing liabilities	632	390	47
–Share repurchases	-	-363	-430
–Dividend paid out	-1 049	-811	-811
Cash flow from financing activities	-417	-784	-1 194
Cash flow for the period	-105	-510	-355

Change in shareholders' equity, 30/6/2007

	Majority	Minority
SEK m	owner's share	owner's share	Total
Amount at start of year	2 420	–	2 420
Change in fair value of forward exchange contracts	0	–	0
Total changes in net worth reported directly against shareholders'
equity, excluding transactions with the company's owners	0	–	0
Profit for the period	374	–	374
Total changes in net worth, excluding transactions with the company's
owners	374	–	374
Dividend to shareholders	-1 049	–	-1 049
Amount at end of period	1 745	–	1 745

Change in shareholders' equity, 30/6/2006

	Majority	Minority
SEK m	owner's share	owner's share	Total
Amount at start of year	2 825	119	2 944
Accumulated exchange rate difference attributable to discontinued operation	-20	–	-20
Minority interest attributable to discontinued operation	–	-119	-119
Change in fair value of forward exchange contracts	1	–	1
Total changes in net worth reported directly against shareholders'
equity, excluding transactions with the company's owners	-19	-119	-138
Profit for the period	353	–	353
Total changes in net worth, excluding transactions with the company's
owners	334	-119	215
Share repurchases	-363	–	-363
New issue	3	–	3
Dividend to shareholders	-811	–	-811
Amount at end of period	1 988	–	1 988

Change in shareholders' equity, 31/12/2006

	Majority	Minority
SEK m	owner's share	owner's share	Total
Amount at start of year	2 825	119	2 944
Accumulated exchange rate difference attributable to discontinued operation	-20	–	-20
Minority interest attributable to discontinued operation	–	-119	-119
Change in fair value of forward exchange contracts	0	–	0
Total changes in net worth reported directly against shareholders'
equity, excluding transactions with the company's owners	-20	-119	-139
Profit for the period	852	–	852
Total changes in net worth, excluding transactions with the company's
owners	832	-119	713
Share repurchases	-430	–	-430
New issue	4	–	4
Dividend to shareholders	-811	–	-811
Amount at end of period	2 420	–	2 420

	30/6/2007	30/6/2006	31/12/2006
Operating margin, %1	3,7	3,5	3,9
Margin after financial items, %	3,6	3,5	4,1
Equity ratio, %	28,3	33,3	39,8
Debt-equity ratio, net, multiple	0,5	0,3	0,0
Debt-equity ratio, multiple	0,63	0,40	0,19
Interest coverage, multiple	25,8	36,1	43,2
Capital employed, SEK m	2 849	2 793	2 887
Return on capital employed, %	44,2	33,5	37,3
Return on shareholders' equity, %	46,8	30,8	32,5
Capital expenditures, SEK m	225	302	587
Earnings per share, SEK2, 3	7,14	6,57	16,03
Dividend per share, SEK	–	–	20,00
Net asset value per share, SEK2, 3	33,26	37,66	46,12
Number of shares outstanding3	52 467 678	52 781 628	52 467 678
Weighted average number of shares2, 3	52 467 678	53 797 693	53 162 625
Weighted average number of shares after dilution2, 3	52 467 678	53 797 693	53 162 625
Number of treasury shares held	2 116 150	1 802 200	2 116 150
Average number of employees during the year	6 873	7 050	7 007

Key ratios and other data

1) Operating margin excluding compensation for the settlement with the Vi retailers association for the full-year 2006.

2 ) Axfood has no outstanding incentive programmes that entail a dilutive effect.

3) The number of shares outstanding less holdings of treasury shares.

Financial reports, Parent Company

Condensed income statement

	Apr.-June			Jan.-June	Jan.-Dec.
SEK m.	2007	2006	2007	2006	2006
Net sales	-	-	-	-	-
Selling/administrative expenses, etc.	-5	-16	-18	-24	42
Operating profit	-5	-16	-18	-24	42
Net financial items	-3	2	-6	2	2
Profit after financial items	-8	-14	-24	-22	44
Appropriations	-	-	-	-	0
Profit before tax	-8	-14	-24	-22	44
Tax	2	4	6	6	-11
Net profit for the period	-6	-10	-18	-16	33
Operating profit includes
depreciation/amortization of	2	2	4	4	8

SEK m	30/6/2007	30/6/2006	31/12/2006
Assets
Tangible assets	25	38	28
Participations in Group companies	2 958	2 996	3 015
Interest-bearing receivables	25	-	24
Other financial non-current assets	3	3	3
Deferred tax assets	9	9	9
Total non-current assets	3 020	3 046	3 079
Receivables from Group companies1)	923	1 073	1 781
Interest-bearing receivables	14	–	14
Other current assets	139	102	14
Cash and bank balances	-	-	1
Total current assets	1 076	1 175	1 810
Total assets	4 096	4 221	4 889
Shareholders' equity and liabilities
Restricted shareholders' equity	273	1 972	273
Unrestricted shareholders' equity	1 884	501	2 951
Total shareholders' equity	2 157	2 473	3 224
Untaxed reserves	9	9	9
Interest-bearing non-current liabilities	225	24	25
Noninterest-bearing non-current liabilities	7	5	6
Total non-current liabilities	232	29	31
Current interest-bearing liabilities	492	393	58
Liabilities to Group companies2)	1 157	1 261	1 417
Accounts payable — trade	5	3	5
Other current noninterest-bearing liabilities	44	53	145
Total current liabilities	1 698	1 710	1 625
Total shareholders' equity and liabilities	4 096	4 221	4 889
Contingent liabilities	362	380	364
Pledged assets	-	-	-
1) Of which, interest-bearing receivables	917	1 065	662
2) Of, which noninterest-bearing liabilities	1 085	1 185	1 362

Condensed balance sheet

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