ICA Gruppen (ICA) Investor update summary

Transaction overview

• All shares in Rimi Baltic are being divested to Salling Group for EUR 1.3 billion, including EUR 0.5 billion in debt, with a capital gain of approximately SEK 7 billion and a cash inflow of SEK 9 billion.

• The divestment includes all stores, warehouses, logistics centers, online business, trademarks, and real estate, with no remaining operations in the Baltics.

• Rimi Baltic will be reported as discontinued operations from 2 March 2025, and the transaction will be booked upon completion.

• Transaction closing is subject to approval by European and Lithuanian authorities, and amounts may vary with EUR/SEK exchange rate changes.

• JP Morgan and Gernandt & Danielsson acted as financial and legal advisors, with joint webcasts scheduled for 5 March 2025.

Strategic rationale and focus

• The divestment is driven by a strategy to focus exclusively on Swedish operations, with no ambition for international expansion.

• Proceeds will be used to strengthen core businesses, enhance customer offerings, and may reduce external debt.

• The timing is based on strategic fit and opportunity, not competitive pressure or recent market changes.

• Sale is seen as a natural conclusion after years of ownership.

• Focus will shift to Swedish operations in food retail, financial services, health, pharmacy, and real estate.

Rimi Baltic performance and market position

• Rimi Baltic reported 2024 net sales of EUR 1,913 million (SEK 21,874 million) and EBIT of EUR 74 million (SEK 849 million), with a 3.9% operating margin.

• Operated 314–315 stores with around 11,000 employees and a 13% market share, being the second largest player in the Baltics.

• Achieved average annual sales growth of 4.1% and EBIT growth of 5.9% over nearly two decades, with 2024 being the second-best year ever.

• First store opened in Latvia in 1997; fully owned by ICA Gruppen since 2007.