Axel Johnson AB - Report on Operations in 1999

3/27/2000 6:14 AM EST

* The Company's profit rose 17 percent excluding items affecting
comparability, to SEK 363 million (309).
* The equity/assets ratio increased to 27 percent (22).
* Decision to form new listed food company through merger Hemköp/D&D
Dagligvaror.
* Sharply higher profit for Åhléns.

Axel Johnson AB's profit after financial items in 1999 was SEK 744 million
(732), of which SEK 381 million (423) comprised items affecting
comparability. The Company's profit rose 17 percent excluding items
affecting comparability, to SEK 363 million (309). Consolidated net sales
totalled SEK 14,515 million (26,044). The balance sheet was strengthened,
and the equity/assets ratio increased to 27 percent (22).

Hemköp maintained its rapid expansion, and five new supermarkets and two
bakeries were established during the year. A large-format supermarket
concept was launched in Gävle and Linköping.

At D&D Dagligvaror, the year was dominated by major restructuring and
rationalization. Net sales in 1999 totalled SEK 18,805 million and profit
after net financial items amounted to SEK 106 million. Restructuring costs
of SEK 76 million were charged to profits. D&D was not included in the
consolidated financial statements for Axel Johnson AB in 1999, which
accounts for the lower net sales figure of Axel Johnson.

Spar Inn AB was renamed Spar i Sverige AB. All stores were reprofiled in
accordance with the international SPAR concept.

In March, Axel Johnson AB acquired a shareholding corresponding to 24.6
percent of the votes and 15 percent of the capital in Spar Finland Abp,
with an option to acquire a further 41.3 and 25 percent, respectively,
from MeritaNordbanken. Spar Finland is listed on the "I" List of the
Helsinki Stock Exchange.

In November, the Boards of Directors of Hemköp and D&D announced their
intention to merge the two companies and to acquire Spar i Sverige AB and
Spar Inn Snabbgross AB from Axel Johnson AB.
In addition, a majority of the voting rights in Spar Finland is to be
acquired from Axel Johnson and MeritaNordbanken. In March 2000, one of the
biggest food companies in the Nordic area is thereby established.
Hemköp acquires D&D via a new issue of shares, which are quoted on the
"A" List of the OM Stockholm Stock Exchange. Axel Johnson has an initial
holding of around 47 percent of both votes and capital.

Servera is today the market leader among wholesalers who supply catering
institutions and restaurants. In recent years, Servera has recorded a good
earnings trend, mainly through increased sales combined with extensive
rationalization and cost-cutting measures.

Åhléns' profits increased more than fourfold. Three new Home Stores were
opened in Norway, where a total of four Åhléns Home Stores were operating
at year-end. Further Home Stores as well as Body & Beauty units will be
introduced in both Norway and Sweden during 2000.

At Axel Johnson Invest, the AxFast real-estate company developed
satisfactorily, recording a substantial increase in profits. NovAx is a
venture capital company which invests in small and medium-sized companies
in the service industry. New investments were made in, for example, the e-
commerce, and security sectors. Saba Trading, the leading fruit and
vegetable wholesaler in the Nordic area, largely maintained its profits,
despite low prices as a result of over-supply in the world market.


For further information, please contact:

Göran Ennerfelt, President and CEO, Axel Johnson AB tel. 46-8-701 61 00/
dir. 6108

Thomas Rietz, Vice President, Chief Financial Officer tel. 46-8-701 61 00/
dir. 6140


The Axel Johnson Group consists of three legally and financially
independent groups with a common owner, Antonia Ax:son Johnson and family.
It is a fourth-generation family-owned company originating in the A.
Johnson & Co. trading company, which was founded in 1873.

Axel Johnson AB operates in food products and other consumer goods,
through import, distribution and retail operations. The operations are
conducted in the Nordic market, with a focus on Sweden. In total,
subsidiaries and affiliated companies have sales of nearly SEK 40 billion
- excluding VAT - and some 13,000 employees.

Axel Johnson International AB conducts trading and distribution
operations, primarily focusing on industrial products in the European
market. Annual sales amount to SEK 4 billion, with 1,200 employees.

Axel Johnson Inc. conducts operations in North America. The Group is
active in manufacturing and trading, within the business areas Energy,
Telecommunications and Environment. Annual sales amount to approximately
SEK 12 billion, with 1,600 employees, primarily in the U.S.