ZOOM IN – ZOOM OUT - Axel Johnson

Axel Johnson Annual Review 2021

ZOOM IN – ZOOM OUT

2 21

TRANSFORMATION

At the beginning of 2021, Dagab began a collaboration with Scania to deliver food with electric trucks. 60 percent of the fleet today runs on renewables, mainly gas and RME, and in the future, electricity. When the new warehouse in Bålsta is inaugurated in 2023, the goal is for a significantly higher proportion vehicles to be electric.

TREAT

At selected KICKS stores, beauty treatments are offered in makeup, skin care, eyebrows & lashes as well as nails via the newly started concept Treat by KICKS. Ellinor works as a skincare therapist at Mall of Scandinavia – one of the stores that has rolled out the concept.

REMOTE MONITORING

AMC Instruments – a company within Axel Johnson International’s business area Lifting Solutions – together with colleagues from other companies in the business area has developed Rope Watcher, a line x-ray device that makes it possible to remotely detect defects in steel ropes. Rope Watcher is the first product of its kind on the market.

POSITIVE TRENDJeanette Cyrus is Head of Fashion at Åhléns City Stockholm. In 2021, Åhléns saw good growth in women’s fashion and beat the Swedish Trade Federation’s Style Index by a good margin.

FIRST-RATE FISH

At Gretagården in Skåne, entrepreneurs Johan Ljungquist and Mikael Olenmark Dessalles have been working with integrated farming and aquaculture for the past five years. Gårdsfisk fish are raised here, in which Novax invested in 2021. Read more about the company on p. 38

Our visionWe will hold a leading position in our markets and our companies will be at the forefront of developments within their industries. Through our businesses, we aim to be a positive force for change in the communities of which we are a part.

Our mission We will successfully build and develop profitable businesses within trade and services. We create the conditions for people and businesses to grow.

Our strategyWe create profitable, long-term growth through development and innovation. In ten years, 50 percent of Axel Johnson’s sales will derive from activities that currently do not form part of our business.

Our values• We put the customer first.

• We build and develop sustainable businesses.

• We test new ideas and are willing to change.

• We give freedom and responsibility to our employees.

Word from the Board Chair 10Word from the CEO 12

STRATEGY AND TRANSFORMATION

Axel Johnson’s sustainable business strategy 16Half new in ten years 18Transformation 19Investments 20New ways of meeting customers and offers 22Zoom in – zoom out 24

SUSTAINABILITY

Sustainability for us 32Social sustainability 33Climate 36Circularity 38Partnerships 40

OUR GROUP COMPANIES

Axel Johnson International 46Axfood 48AxSol 50Dustin 52KICKS 54Martin & Servera 56Novax 58Åhléns 60

ORGANIZATION & FINANCIAL RESULTS

Board of Directors 64Group management 66Earnings for the year 68Axel Johnson’s history 72Axel Johnson Group 74

Contents IMPORTANT EVENTS 2021

AXEL JOHNSON has record profits of SEK 3.66 billion and continues to maintain a high pace of transforma-tion toward the 10/50 target.

DUSTIN acquires Centralpoint, be-coming a leading IT supplier in the Benelux countries.

AXFOOD is once again growing faster than the market, acquiring Bergendahls Foods’ wholesale business and becoming a partner in Mathem in connection with the divestment of Mat.se.

The industrial group AXEL JOHNSON INTERNATIONAL makes record profits of SEK 999 million.

KICKS increases sales by 10 percent and improves profits.

Continued solar investments by AXSOL include acquiring two new companies and Axel Johnson and Axfood signing an agreement to start Sweden’s two largest solar parks.

NOVAX continues to deepen its sector focus, including in the health area, where it becomes a partner in Aqua Dental and where the fitness chain STC acquires industry peer Puls & Träning.

AXEL JOHNSON ANNUAL REVIEW 2021 7

AXFOOD is a leading group in the grocery industry in Sweden and consists of a fam-ily of distinctive cooperative food concepts.

AXSOL is Axel Johnson’s youngest company, started at the turn of the year 2019/2020 to cluster investments in the solar energy sector.

DUSTIN is a leading online-based IT partner that sells IT products and services, with operations in the Nordic and Benelux regions.

KICKS is the Nordic region's leading beauty chain, offering a holistic concept in make-up, fragrance, skin care and hair care.

MARTIN & SERVERA is Sweden’s leading restaurant and catering specialist and delivers beverages, fresh produce, food, equipment and services to restaurants, ca-fes, shops, bars and commercial kitchens daily.

NOVAX is an active and long-term owner partner that invests in small and medi-um-sized growth companies.

With a focus on food and businesses that span fields such as industry, IT solutions, beauty, health and solar energy, we are in the middle of the fastest change in our history. The trans-formation is aimed at our 10/50 goal, which means that half of what we do in ten years’ time will be things we do not do today. Axville is the city that shows which companies are included in Axel Johnson.

AXEL JOHNSON INTERNATIONAL is an industrial group that develops and acquires companies that provide products and services to industrial companies.

A family business that helps people and communities grow.

AXEL JOHNSON ÅHLÉNS is a marketplace with a wide and carefully selected range of own and external brands in beauty, home and fashion.

INVESTMENTS OUTSIDE THE GROUP COMPANIES We invest in growth companies and other entrepreneurial companies, primarily within the framework of Novax, but we also have direct ownership in a number of companies. For example, Sonline skincare clinic Skinc-ity and Mitt Liv, a non-profit company that works for an inclusive society.

all continents of the world, through historical events, technological innovations and – not least – is the result of the driving forces of many people. Five generations of owners have, together with employees, built and developed the group with their passion and dreams.

AXEL JOHNSON HAS changed shape and form many times. I reflect on the fact that it is rarely individual choices or groundbreaking decisions but instead many small steps and changes that create movement or a new direction. Our common thread is transformation and development, the ability to change and adjust, to take new risks. Our long-term perspective has been – and remains – absolutely crucial in making the best decisions, in both adversity and success. The essence of the family business, with the ambition to build for future generations and to have a positive impact on society through our business.

I ZOOM IN on the present and feel proud that 2021 was the largest investment year in Axel Johnson’s histo-ry. We have completed several major deals, not least within Axfood and Dustin, and our profits are the best we’ve ever had. It gives us great opportunities to con-tinue our transformation journey and to build sustain-able companies we are proud of.

Predicting the future can be exciting, but is vir-tually impossible. We have been reminded of this in recent years. The biggest events are often both unexpected and disruptive. The Corona pandemic and developments in Ukraine are the latest in a series of unprecedented events. The pandemic was impossible to predict, and when it comes to Ukraine, I think there were many of us who, despite the warning signs, could not imagine a full-scale attack on a large, independent

European country. The humanitarian catastrophe is heartbreaking and unimaginable. We must never deviate from our belief in freedom, democracy and the inherent power and will of every human being.

CRISES OF THE magnitude we have experienced in recent years can sometimes make the contribution of our own business feel small. But in light of the humanitarian cri-sis, corporate responsibility as well as our responsibility

towards each other are highlighted, in individual business decisions and in-dividual human encounters. I have ex-perienced an enormous commitment from the people within Axel Johnson these years. They are solution-ori-ented, flexible and quick-footed in handling difficult and unexpected situations. And extremely committed to our efforts to do our part for those affected by the war. As owners, we want to contribute to social commit-ment by putting the humanitarian and security policy perspective before the

short-term economic one. We do this by following the sanctions set in both letter and spirit and by mobilizing resources to help people in need.

GIVEN THE fragile situation right now, it is hard to even imagine the key stories we will tell in coming years. But there are a few things that we don know. As an owner family, we are inspired by the long-term and impatient development and transformation of the group’s business. We believe deeply in companies as a positive force to change society for the better. And we are convinced of our colleagues’ abilities and willingness to change our compa-nies with creativity and courage together with us owners.

THESE CONVICTIONS set the framework for the coming year, and for the 150 years that follow.

CAROLINE BERGW O R D F R O M T H E B O A R D C H A I R

IN 1873, A. Johnson & Co was founded by saddler’s son Axel Johnson. For many years, he had nurtured a dream of com-ing into his own, independent and free, and of moving from the small town to the big city. The small world to the big.

It started with the import and export of raw materials, which quickly led the business into shipping. In just over a year, Axel Johnson will be 150 years old. I zoom out to find the key stories about the formation of our compa-ny, which over time has stretched across

“But in light of the humanitarian crisis, corporate respons ibility as well as our respons ibility to-wards each other are highlighted”

W O R D F R O M T H E B O A R D C H A I R , C A R O L I N E B E R G

AXEL JOHNSON ANNUAL REVIEW 2021 1110 AXEL JOHNSON ANNUAL REVIEW 2021

Zoom in and zoom out

In 2021, we achieved Axel Johnson’s best profits ever. We also continued moving forward at the high pace required to reach our transformation goal, despite the fact that the year began and ended in the shadow of the pandemic. It is a fantastic message of strength. Hopefully now we can become completely accustomed to pandemic restrictions, but our ability to successfully manage rapid change will be crucial in the future, in a historically uncertain political and economic environment.

In 2021, our companies improved their profits across the board. Not least, the industry group Axel Johnson International had another very strong year and touched SEK 1 billion in profit after another year of improved profitability, with both organic growth and acquisitions as well.

In addition to the positive earnings trend, a large number of investments were also made. Among them were two particularly transformative deals. Firstly, Dustin’s acquisition of Central-point, which makes Dustin a leading player in the Benelux countries.

The second was Axfood’s acqui-sition of Bergendahls Food – a deal we have been considering for a long time. Axfood also had a really strong year, with higher growth than the market. Hemköp took important steps

forward and Willys was the first Swedish food player to reach break even in e-commerce.

KICKS has shown great strength as it managed rap-id channel changes between stores and e-commerce, which led to an all-time high for sales and enhanced profits. Restaurant wholesaler Martin & Servera showed that you could quickly switch gears during a strong summer and fall as people returned to restau-rants in large numbers. Åhléns took significant steps forward after a difficult 2020. Both the Outlet format and e-commerce grew and the year ended strongly.

On the transformation side, our investment com-pany Novax as well as our solar company AxSol made exciting acquisitions that increase our presence in areas such as food, health and solar energy.

TRANSFORMATION BASED ON MEGATRENDSTo succeed as well as our group has in 2021, a constant focus on improvement in every detail is required. An obsession with efficiency at every step and a desire to improve every part of the customer experience. It

determines the results here and now. But to be successful over time, in

addition to focus on detail, something else is required: the ability to zoom out. To see and relate to the long move-ments and trends that characterize our time. Of these, digitalization and climate change are the most crucial trends, with all the issues that fall un-der these umbrella concepts.

On the digitalization side, automa-tion and AI are central development themes in our operations. During the

ProfitAX is for the listed companies’ profit after financial items according to IFRS and for the non-listed companies’ profit after financial items excluding goodwill amortization, adjustments to additional purchase consideration, items affecting comparability and discontinued opera-tions. ProfitAX is used to enable increased comparison between the Group companies and other, listed companies outside the Group, and comparison between years.

P R O F I T F O R T H E Y E A R A X

SEK 3.67 BILLION

MIA BRUNELL L IVFORS , CEO

W O R D F R O M T H E C E O , M I A B R U N E L L L I V F O R S

AXEL JOHNSON ANNUAL REVIEW 2021 1312 AXEL JOHNSON ANNUAL REVIEW 2021

Strategy and transformation

year, our companies invested more than ever in fixed assets, most of which were in new highly automated lo-gistics centers. Axfood’s investment in Bålsta is by far the largest, but Martin & Servera, Åhléns and KICKS are also investing in highly automated warehouses, which will create scale and flexibility between e-com-merce and deliveries to stores.

With the help of AI, we can optimize our deci-sion-making in many areas, such as purchasing and pricing, and sharpen our ability to understand cus-tomers. We can also become more resource efficient and reduce our climate impact, not least by optimizing logistics.

SUSTAINABILITY WORK FOUNDED ON FAMILY OWNERSHIP AND BUSINESS ACUMENAxel Johnson’s focus on sustainability has been part of our DNA for decades. Our owners want to build com-panies that combine business and societal benefits. It is not just an ethical stance, but also a way of securing financial sustainability. A business that does not create a positive net for society risks both customers’ trust and society’s acceptance. Therefore, we are also con-vinced that over time it is a good idea to take greater responsibility for climate impact than what is required of us here and now.

For several years, we have successfully reduced our CO2 footprint in our own operations, through less envi-ronmentally damaging transport, investments in ener-gy efficiency and in renewable energy production. But for commercial activities, direct emissions are a small part of the total impact in the value chain. Changing how everything from IT products to food is produced in global supply chains is a large and difficult task, and a task that can only be handled in collaboration with other players. We must acknowledge our dependence on others, but never use that dependence to back away from our share of the responsibility.

Sustainability efforts require commitment and conviction, but even more important are honesty and business acumen. We need “warm hearts and cool heads,” as Dustin’s CEO Thomas Ekman has put it. Because when we widen our gaze, we see a number of trends that sometimes conflict with each other. For example, an increased price focus among consumers,

which can sometimes conflict with sustainability. This is something everyone who works on market terms has to relate to, but based on our long-term value-based ownership, we have a clear direction that helps us make wise and responsible choices, even when the short-term financial calculation is difficult to assess.

ONWARDS!Axel Johnson enters 2022 with a strong forward impe-tus. And we are on our way to becoming a more diversi-fied company. Food accounts for more than 70 percent of our sales. But we also have strong industrial opera-tions and emerging business areas in fields such as solar energy and health.

We have a fantastic corporate culture with leaders and employees who truly live up to our ambition to be both long-term and impatient. A culture that affirms new thinking. But also the desire, through the thousands of decisions we collectively make in our everyday lives, to contribute positively to the societal challenges we see when we zoom out.

Just this desire to play a constructive role in so-ciety will be central in the times to come. Because in March 2022, we are facing an unforeseen humanitarian catastrophe caused by the brutal Russian invasion of Ukraine. Of course, we follow the development closely as it affects our operations. But we must also act ethically and responsibly to contribute as a company to support our society and to alleviate human suffering.

With 149 years of history for the family business Axel Johnson, I am still hopeful that the best is yet to come.

Word from the CEO - cont.

“We must acknowledge our dependence on others, but never use that dependence to back away from our share of responsibility.”MIA BRUNELL LIVFORS, CEO

14 AXEL JOHNSON ANNUAL REVIEW 2021 AXEL JOHNSON ANNUAL REVIEW 2021 15

Axel Johnson’s SUSTAINABLE

BUSINESS STRATEGY

The business strategy includes finan-cial management, transformation and sustainability, and describes how we are to achieve our overall goals of growth, profitability and value cre-ation. The strategy is a tool for plan-

ning and reporting where we can monitor and measure our companies’ development both in the short and long term. And to follow the underlying factors, which are critical for long-term growth.

Through the strategy, we follow the compa-nies’ development in six business-critical target areas: valuable customer offering; resource efficient, environmentally friendly and qualitative activities; transformation; digital transforma-tion; sustainable and efficient production; and values-based employeeship and leadership.

The strategy creates conditions to achieve our fi-nancial goals for profit and growth, but also contrib-utes to fulfilling our vision to have a leading position in our markets and that our companies should drive and lead development in their industries.

SUSTAINABLE BUSINESS PRACTICESOur starting point is the family company’s val-ues with sustainable business as a guide. With a combination of long-term perspective and impatience, we want to develop business that makes people and communities grow. We know that sustainable business practices contribute to sustainable business and societal development.

Through our businesses, we want to be a pos-

itive force for change in the societies we are part of. Under each target area, there are a number of sub-targets, for example, about our companies reducing their climate impact, increasing the proportion of circular processes, driving digital development in the business and having the in-dustry’s most satisfied employees and customers.

In 2018, Axel Johnson developed a Group-wide climate goal that the companies must be climate-neutral by 2030. Rather than based on compensation, it will be achieved 85 percent through reduced actual emissions. Read more on pages 26–37. To ensure we recruit and develop employees based on the entire talent pool, we set clear goals for equality and diversity in 2015 – goals that in 2021 were supplemented with goals for age distribution and perceived level of inclu-sion. For several years, we have achieved the goal of an even gender distribution among leaders. We have moved from 6 percent to 15 percent of man-agers with a non-Swedish background, but have not reached all the way to the goal of 20 percent. Read more about what we do to increase the pace to improve diversity on pages 34–35.

Our 10/50 target for transformation means that in ten years, at least 50 percent of Axel Johnson will consist of activities we do not engage in today. The 10/50 goal is the guiding light for the rapid transformation we are undergoing and seven years after it was set, we are well on our way to reaching it for the first ten-year period – read more about our transformation work on pages 18–23.

S T R A T E G Y A N D T R A N S F O R M A T I O N

DIGITAL

TRANSFORMATION TRANSFORMATION

SUSTAINABLEAND EFFICIENTPRODUCTION

RESOURCEEFFICIENT,

ENVIRONMEN-TALLY

FRIENDLY ANDQUALITATIVE

ACTIVITY

VALUES-BASED

EMPLOYEESHIP AND

LEADERSHIP

VALUABLE CUSTOMER

OFFERING

VISION, BUSINESS IDEA

AND VALUES

INVESTMENTS

CASH

FLO

W

EARNINGS

GROWTH

Through transformation and development, we aim for profitable, sustainable and long-term growth in our companies in a framework set by our sustainable business.


139

new

companiesOn track to reach ambitious transformation goals

Diversity movement

CLIMATE CHANGESince our first survey in 2016, we have reduced our businesses’ direct greenhouse gas emissions 46 PERCENT.*

10/50I

N 2014, we set a goal for the transformation of Axel Johnson. The goal formulation 10/50 means that in ten years, half of what we do will be things we do not do today.If the 10/50 movement in 2020 was primarily

driven by e-commerce growth, then in 2021 acquisitions in our operations were the single most important driver. Seven years into the first ten year period, we have reached 41 per-cents renewal and are well on track to achieve our 10/50 goal.

OUR VIEW OF TRANSFORMATION IS THREEFOLD:• Transformation takes place every day, in our

operations and in decisions we make when we choose to do something different and better. This is the very foundation.

• The second element is the business develop-ment in and around the companies, such as when we introduce new brands and product categories or enter new markets. This is where organic growth in our companies is created.

• The third element is the acquisition of new businesses, which can be done in the compa-nies or directly under Axel Johnson.

In 2021, product development continued within Axfood’s own branded products, such as Ga-

rant and the baby food brand Minstingen. KICKS also continued its investment in its own brands such as BeautyAct by KICKS. Growth in e-com-merce continued in many places, albeit at a more modest pace than in 2020.

But from a 10/50 perspective, a number of large transformative deals particularly marked 2021. The two largest were Axfood’s acquisition of Bergendahls Food, and Dustin’s acquisition of Dutch Centralpoint. In addition, we continued to grow in solar energy, health, food of the future and industrial automation (read more on page 23).

That we are well on our way to achieving the goal for the first ten-year period is of course positive, but it does not really change our ambi-tions. The 10/50 target has no end point. On the contrary: Every new year is the starting point for a new 10/50 period, and we want to reach the goal again, again and again.

10/50-goal

New Old


TransformationsSince the starting point at the end of 2014, Axel Johnson has made major transformations. Here are five different

measurements illustrating some of our 10/50 transformations.

10/50

*Adjusted for sales for comparability – read more about how we measure on page 37.

MOST ACQUISITIONS have been made within our subsidiaries, but a

significant number have also been made by Novax and directly by Axel Johnson to develop new areas of interest and possible

future Group companies.

DUSTIN OCS SOLKOMPANIET AQUA DENTAL

SKINCITY STC OTOVO KALTECH EUROCASH

BERGENDAHLS CENTRALPOINT

2014

2014

2021

2021

8.7 %

31.3 %

At the beginning of the 10/50 period, there were only a few e-commerce offers within Axel Johnson. E-com-merce is now approaching a third of the Group’s total revenue. Our e-commerce share has increased signifi-cantly faster than for the Swedish market as a whole, where the share during the same period ranged from 6 to 14 percent (Swedish Trade Federation).

FROM MINIMAL TO FAST-GROWING E-COMMERCE

6%

15%

E - C O M M E R C E S H A R E O F A X E L

J O H N S O N ’ S S A L E S From 2014 to 2021, the proportion of managers with a non-Swedish background in our Group compa-nies has gone from 6 to 15 percent. Diversity efforts have been under-way since 2020 in the Axelerate business area, in close collabora-tion with Group companies.

This means an increase in sales of 42 percent. The change has been driven by both organic growth and

acquisitions. The industrial group Axel Johnson Inter-national, for example, has doubled its turnover and

more than tripled its profit since 2014.

67 95BILLION IN TURNOVER

2024 50% 50%

2020

2021

34%

41%

66%

59%

2019 31% 69%



INVESTMENTSThe foundation of Axel Johnson’s movement toward the 10/50 target is organic transformation in our existing companies. But acquisitions and investments in new operations are also important tools for creating growth in new areas and strengthening our existing companies’ positions.

investments where we became owners of new companies

total investments in new companies in 2015–2021139

264

10/50

DURING THE YEAR, Axel Johnson strengthened its presence in relatively new industries such as solar energy and health. But the heaviest investments were made in our Group com-panies, in areas adjacent to our own business. Again, Axel Johnson International was the Group company that acquired the most actively, with a total of 15 new companies in 2021. But the two really big acquisitions were made by Axfood and Dustin, which helped make 2021 one of the most business- intensive in Axel Johnson’s history.

billion was invested in new and existing companies

Mat.se Mathem

Solar cells for indoor use and large-scale parks

ON OCTOBER 1, Axfood completed the acquisition of the wholesale business Bergendahls Food and a minority stake in City Gross, which is part of a strategic partnership. The acquisition creates economies of scale and synergies, which also benefit consumers through increased ef-ficiency as well as product range and logistics improvements. In connection with the transaction, Axfood also became the owner of 9.9 percent of City Gross, with an option to increase ownership to 30 percent.

AXFOOD BERGENDAHLS

TOWARD THE END of the year, Ax-food announced another signifi-cant deal. Axfood entered into an agreement to divest its e-com-merce provider Mat.se in return for shares in Mathem. When the transaction is completed, Axfood will be the second largest owner in Mathem, with 16.5 percent of the shares.

IN 2021, AxSol invested in two new businesses.Epishine has a pioneering patented process for

printing organic solar cells. The printed flexible solar cells can be used in real estate properties – in, for example, wireless sensors, electronic locks and smoke alarms. But over time, there are great opportunities for Epishine to grow in many areas of use where limited indoor power supply is required. Not least, there are great opportunities to take advantage of the growth of the “Internet of Things” and the rapidly increasing number of connected

devices in real estate and households.The second investment was made in Energi-

Engagemang, where Axel Johnson has been majori-ty owner since the summer of 2021. The company is one of Swedish solar energy’s market- and knowledge-leading players, with a focus on the corporate market. Large-scale solar parks, an area where EnergiEngagemang is active, has until recently been a limited phenomenon in Sweden, but is the segment of the solar energy market that is expected to grow fastest.

THROUGH THE ACQUISITION of the Dutch company Centralpoint, with a turnover of around SEK 7 billion, Dustin becomes a leading player not only in the Nordic region but also in the Benelux region. In 2022, Cen-tralpoint will switch to the Dustin brand and as in the Nordic opera-tions, the goal is to provide a leading hardware and software offering in combination with service sales. The combined business will be one of the 7-8 largest in Europe.

Dustin gains a second home market

IN JANUARY, Novax became a major player in the Aqua Dental dental care chain. The goal is to create Sweden’s leading private dental care chain with a focus on quality and patient care. During the first quarter, STC acquired industry peer Puls & Träning. This makes STC Sweden’s second largest fitness chain in terms of number of fa-cilities. Through the acquisition, STC gained a large presence in the Stockholm area, where it had previously been lacking.

DENTAL CARE AND FITNESS BOOST NOVAX HEALTH PROFILE

SOLAR DEVELOPMENT


S T R A T E G I O C H F Ö R N Y E L S E

AUTOMATION on a large scaleTHE YEAR 2021 saw many major acquisi-tions, but also record-breaking physical investments. An important investment theme within Axel Johnson is the transi-tion to highly automated omni-warehouses that deliver to both physical stores and e-commerce. Dustin’s new logistics center in Rosersberg has been in use for a year and a half, Martin & Servera is completing a new warehouse in Norrköping and Åhléns, KICKS and Skincity are all in different phases of transition to new warehouses..

But purely in terms of scale, Axfood’s purchasing and logistics company Dagab’s new logistics center in Bålsta is an invest-ment that stands out. The building will be 30 meters high, 700 meters long and 175 meters wide – corresponding to a floor area

of 15 soccer fields. In fall of 2021, the instal-lation of automation technology began, which enables close to 90 percent of goods to be picked automatically. When the plant is fully operational in 2023, it will be able to deliver goods to 10 million people, via shops and convenience stores, or directly to e-commerce customers.

Automation creates efficiencies in order handling, product picking and logis-tics. Through omni-warehouses handling the supply of goods directly to e-com-merce customers and physical stores, effi-ciency can also be improved in transport, in terms of degree of filling, number of vehicles and route optimization, with the possibility of both financial and environ-mental savings.

Developed customermeetings and offers

An important part of 10/50 is to develop new service areas in connection with the companies’ existing business. Central themes in recent years have been the use of digital tools, not least in AI and automation, to improve customer understanding

and user experience. But even physical meetings, such as Treat by KICKS, contin-ue to be important in developing a relationship with company customers.

10/50

s

More reasons to visit stores

KICKS In fall of 2021, KICKS rolled out a pilot for Treat by KICKS, a selection of treatments offered in stores. The response from customers was strongly positive and the number of treatments done increased by 183% compared to the same period in 2019 for the pilots. Sales in connection with treatments for the pilots increased even more sharply, almost tripling.

In 2022, KICKS will roll out Treat in another 55 stores in Sweden and during the second half of the year, the rollout will continue in 15 stores in Norway and 10 in Finland.

ONLINE FOOD SALES is a growing and challenging business. The large number of items in a food order and the differ-

ent temperatures required to ensure the quality of different goods call for more complexity than for clothes or beauty products, for example. So profitability also has been challenging. In De-cember 2021, Willys, as the first Swedish player, announced it had succeeded in reaching break even in its e-commerce. An important ingredi-ent has been growth in click and collect, where customers pick up their pre-packaged orders in storage outside the store.

CLICK & COLLECT MAKES WILLYS E-SALES PROFITABLE

APOHEM AND MAT.SE FIRST WITH JOINT DELIVERY OF FOOD AND PRESCRIPTION MEDICINE

APOHEM IS A fast-growing online pharmacy co-owned by Axel Johnson companies Axfood and

Novax. In June 2020, the first pilot project was launched between Mat.se and Apohem, with Mat.se’s customers in Stockholm able to get pharmacy products together with their weekly food order. After scaling up joint home deliveries in 2021, Mat.se, together with Apohem, became the first in Sweden to offer joint deliveries of prescription medicine and food to customers in Stockholm in a new pilot project.


9xDuring the pandemic years, it has been singularly noticeable how the narrow and the broad are connected. Axel Johnson is admittedly a company with a strong Swedish focus – at the same time, the megatrends we face are usually local variations of global events and issues. This applies to technical de-velopment, it applies to ma-jor sustainability issues, and it also applies to a large extent to consumer behaviors.

HOW MUCH TRANSPORT

ELECTRICITY NEEDS ARE FORECAST TO

INCREASE BY 2045

INDUSTRY

TRANSPORT

2019 2045

IN LATE SUMMER 2021, the UN climate panel IPCC published a report that was very clear in its conclusions: The current direction of movement is insuf-

ficient. The report was followed by the COP meeting in Glasgow. The interpretation of the meeting’s results differs. Some describe it as a great disappointment with far too few commitments, which did not even have the power and straightforwardness to talk about a phasing out of coal.

Others describe the meeting

as a modest step in the right direction. The more optimistic often point to an increased pace of change in the business sector.

SWEDEN HAS an issue that has a special posi-tion in the debate about the role and oppor-tunities of companies: energy production. Just a few years ago, authorities’ forecasts as-sumed a long-term decline in energy demand. Today we see something else entirely. Driven by new industrial investments, not least bat-tery production and green steel and electri-fication of the vehicle fleet, the industry now predicts that Swedish electricity demand will increase sharply. In a high-level scenario, it could be as much as 70 to 120 percent. This places great demands on the expansion of both production and transmission capacity.

MARTIN & SERVERA and Axfood have initiated an electrification of each vehicle fleet and the ambition is to increase the pace of the

transition. But then it is crucial that there is trust in the energy system’s ability

to deliver power where it is needed. At present, for example, some of

the Group’s large warehouses

ZOOM IN – ZOOM OUT


( T W H )

Climate, energy, electrification

Three trends that will affect us

ELECTRICITY DEMAND IN SWEDEN 2019 AND 2045

350

27

177

do not have sufficient power supply to support a fully electrified vehicle fleet.

Today, Axel Johnson is a leading force in the Swedish market for solar energy. In addition to investments within AxSol, our companies have also, as buyers of solar energy, built Sweden’s largest solar park and signed an agreement on the establishment of two even larger parks.

WE SEE THAT all the conditions are in place for solar energy to grow rapidly from the current level. The financial case is stronger than ever, construction time is short compared to other types of energy, and the effects on the local environment and biodiversity are limited. But the long and unpredictable permit processes create bottlenecks.

Sweden has great opportunities to develop leading businesses that contribute positively to both climate change and com-petitiveness. The most important thing pol-itics can do is to ensure that we can expand fossil-free electricity production at the pace needed and build an infrastructure that both consumers and companies trust.

#1

24 25

The return of geographyON GEOPOLITICS, THE PRICE OF DISTANCE AND THE EUROPEAN POSSIBILITIES FOR AUTOMATION

THE FINAL YEARS of the 1900s are usually described as the most optimistic in modern history. The Berlin Wall fell, and political sci-entists spoke of the “end of history” – a stable end point for the ideological evolution of man-kind, with democratic states and free trade.

During this period, tariffs were abolished, freight prices fell, and the relations of the great powers were marked by increased eco-nomic openness, rather than confrontation. From an economic perspective, it can be said that the earth became smaller.

In recent years, it has become increas-ingly clear that history does not offer eternal

states of equilibrium. The 2010s were marked by a number of wars in the Middle East, the Russian invasion of Crimea and an increasingly turbulent trade climate between the United States and China. Then came the pandemic, with limited mobility of people and soaring freight rates, and towards the end of 2021 an intensified geopolitical unrest, which in early 2022 turned into something far more acute.

FREIGHT EXPLOSION AND EUROPEAN NEO- INDUSTRIALIZATIONDuring 2020 and 2021, shipping prices, which for large parts of the year were between 5–10 times pre-pandemic container prices, sky-rocketed. Axel Johnson’s value chains were also strongly affected with delayed and more expensive deliveries.

The disturbances in supply chains, to-gether with political tensions, have led more industrial companies to carefully consider the advantages and disadvantages of placing

production far away from the end market. A report from the McKinsey Global Institute predicts that around one-fifth of the world’s trading volumes over the next five years may move closer to the market where products are to be sold – so-called “near-shoring.” In Europe’s case, such a movement often is moved from East

Asian production to one of the eastern EU countries.

Interest in production in Europe is also based on advances in automation, which make the industry less labor-intensive, and reduce the importance of wage levels for the total calculation.

AXEL JOHNSON INTERNATIONAL has started a business area in industrial automation to grow with the automation trend, and al-though so far we see a tendency rather than a trend, we believe that industrial start-ups in Europe will increase sharply. In the first stage, mainly through new start-ups in, for example, battery manufacturing. But in the long run, also through changes in existing value chains.

We see how the war in Ukraine and sanc-tions against Russia have an immediate effect on world prices for oil and grain – as well as on electricity prices in Southern Sweden. The need for increased electricity production greatly affects our solar energy companies, which have the ambition to multiply Swedish large-scale production of solar energy in the next few years.

The Russian invasion of Ukraine, with its terrible humanitarian consequences, is

creating a whole new dynamic in our immedi-ate environment. The exact consequences are impossible to predict even in a week’s time, but the tension and friction is increasing rap-idly in an international economic and political system that is in need of the opposite.

WORLD TRADE will find its way, and economic transparency will continue to be the norm, but it will be transparency with more barri-ers and exceptions. Regardless of whether it is expressed in sanctions, rising commodity prices or global detours for aviation, trains and shipping, we can assume that the price of distance will increase.

29 %OF GLOBAL WHEAT EXPORTS

COME FROM RUSSIA AND UKRAINE


“ In recent years, we have seen a counter-movement where geographical distances and national borders have once again become more significant and costly.”

SHIPPING PRICES 2016–2021

2016 2017 2018 2019 2020 2021

4,000

3,000

2,000

1,000

0

#2

( S H A N G H A I C O N T A I N E R I Z E D

F R E I G H T I N D E X )

5,094


Food trends in conflictSUSTAINABLE PROTEINS, VALUE FOR MONEY AND CONVENIENCE.

The global food system is the world’s largest industry, with close to 8 billion cus-tomers and about 10 percent of global GDP. Food affects

everyone, and how food is produced, dis-tributed and consumed affects the environ-ment, social structures and health. Food is a necessity and a pleasure – as consumers we are on the one hand curious and our tastes change quickly, but on the other hand we are price-conscious and want comfort.

SUSTAINABILITY: BETTER PROTEINSFood production today accounts for 25-30 percent of total greenhouse gas emissions, the majority of which are linked to raising animals. In addition, a breathtaking third of all food is wasted in various parts of the value chain.

Globally, total meat consumption is grow-

brands, with an increasing focus on vegetar-ian products, and with product launches of completely new protein sources, such as Ca-shewmeetly – a meat substitute made from cashew apples.

AFFORDABILITYIn trend reports and analyses of the food industry and food tech, the focus is naturally on innovation – new technologies and be-haviors. Perhaps that is why one of the most persistent movements in the food market is hardly noticed at all: the growth of discount chains.

When asking consumers the primary factors driving their choices, convenience and value for money are consistently ranked at the top. While nothing new, it is persistent, and in markets throughout the western world, low-cost players are gaining market share. It is also clear that low prices are of interest to a large proportion of households and in no way are limited to customers with tight household finances. With rising food prices and increased economic uncertainty, it appears very likely that price awareness will increase further, which is also strength-ened by growing e-commerce.

Based on the ability to combine quality and price value, Willys has quarter after quarter managed to grow faster than the market by offering a wide range with both distinct low-price products and market-lead-ing brands further up the price ladder, plus a large range with a sustainability profile.

Seeing the impact of price on purchasing decisions is central also from a sustainability perspective. There is undoubtedly a group of customers willing to pay more for sustainable choices, but in order to reach broad customer groups and to really have an impact on pro-duction, suppliers and businesses must offer sustainable food that defends its spot on the shelf on its own merits.

#3


1/3SHARE OF THE WORLD'S FOOD PRODUCTION THAT

IS WASTED

“So far, rapid deliveries are subsidized by venture capital.”

ing roughly in line with population growth. On the other hand, Sweden passed “peak meat” in 2016, and our meat consumption per person has since decreased slightly each year. Vegetarian protein alternatives, in minced, burger or other form, have gone from being a narrow niche for vegetarians, to becoming part of more and more carnivores’ diets.

The market for meat alternatives is expected to grow by almost 15 percent per year until 2025. If meat substitutes were to reach 10 percent share of global meat sales, it would mean a market of around SEK 1 trillion (milk substitutes have already taken 15 percent of the U.S. dairy market). Future prospects for alterna-tive protein sources are what attract great interest from investors.

This protein shift is one of Axel Johnson’s investment company Novax’s focus areas, with investments in, among other things, Gårdsfisk’s cycle for aquaculture on farm-land, Prolupin’s plant-based dairy prod-ucts and agricultural inputs and in Svensk Baljväxtfärs, developed at Axfoundation’s experimental farm, Torsåker.

Within Axfood, Dagab develops 250-300 new products every year for Axfood’s own

COMFORT: QUICK COMMERCE – HOW FAST DO WE NEED IT?Home-delivered restaurant food had long been big in North America, but a marginal phenomenon in major Euro-pean cities. In recent years, home delivery has grown exponentially, which can be seen just by looking around. In 2021, a similar trend in groceries grew, with a number of new players delivering within 15–30 minutes.

The average shopping cart for “regular” online food purchases is well below SEK 1,000. With quick commerce players, the average is a bit less than SEK 200, an amount that is difficult to deliver with profitability. So far, rapid deliveries are subsidized by venture capital in the struggle for customers and market shares.

So it remains to be seen how large the market really is for rapid food deliveries. What we can be absolutely sure of, however, is that customer expectations of speed and availability have shifted.

Sources: FAO, Food and Land Use Coalition, McKinsey, Dagligvarunytt, Statista, World Bank


Sustainability


S U S T A I N A B I L I T Y

SUSTAINABILITY FOR US

Axelerate is a business area within Axel John-son tasked with speeding up the diversity and inclusion efforts in our Group companies, as well as strengthening the Group’s community involvement in diversity and inclusion.

Axelerate supports our companies through Group-wide activities, train-ing and knowledge-raising initiatives. It also works with the development of

knowledge-based tools for inclusive recruit-ment and promotion, as well as with KPIs and goals.

The driving force in its efforts is that we want leaders and employees who can best understand and meet our customers and the society we operate in. We want to ensure that we recruit and develop employees on objective grounds, and thusare using 100 percent of the talent pool. The ambition is for Axel Johnson to become a leader in diversity and inclusion.

Together with our Group companies, Axel-erate has identified the following five focus ar-eas to make Axel Johnson’s companies leaders in diversity and inclusion:

INCLUSIVE RECRUITMENT AND PROMOTION

1Ensure that recruitment and promotion processes are based on

knowledge and skills.

INCLUSIVE WORKPLACE

2Equip leaders and employees to be inclusive in practice and to follow up

when employees experience inclusion and discrimination.

MARKETING & COMMUNICATION

3Ensure diversity and inclusion in marketing and communication.

PRODUCT AND SERVICE DEVELOPMENT

4Strengthen innovation and develop-ment of range and offers for possible

new customer groups.

COMMUNITY INVOLVEMENT

5Collaborations and new initiatives to reduce exclusion in society.

Social sustainabilityFOCUS AND GROUP GOALS FOR DIVERSITY AND INCLUSION

SOCIAL SUSTAINABILITYFocus on diversity

and inclusion

CLIMATEReduced climate

emissions and investments that

contribute to positive change

CIRCULARITYCycles and efficiency measures that reduce the need for new raw

materials

Our ambition is for business and societal benefits to go hand in hand in our business, and we should contribute to sustainable development environmentally and socially. Based on the sustainable development goals, we see that Axel Johnson mainly contributes to the following five areas:

AXEL JOHNSON AND THE UN SUSTAINABLE DEVELOPMENT GOALS

KICKS and The Global Village Foundation together conducted a career workshop with recruitment event and a CV writing school.


• Even gender distribution among managers (balance 40/60 percent)

• At least 20 percent of the leaders and employees must have a non-Swedish background

• Age distribution – at least 10 percent in each identified age group

• High perception of inclusion

Board compositions in the companies Women Men

Axel Johnson 71 % 29 %

Axel Johnson International 83 % 17 %

Axfood 43 % 57 %

Dustin 38 % 62 %

KICKS 57 % 43 %

Martin & Servera 50 % 50 %

Novax 50 % 50 %

Åhléns 67 % 33 %

Total 57 % 43 %

Gender distribution, Axel Johnson Group 2019 2020 2021

Women Men Women Men Women Men

Total 58 % 42 % 59 % 41 % 59 % 41 %

Senior positions 49 % 51 % 52 % 48 % 52 % 48 %

Non-Swedish background, Axel Johnson Group 2019 2020 2021

International Swedish International Swedish International Swedish

Total 25 % 75 % 25 % 75 % 25 % 75 %

Senior positions 14 % 86 % 14 % 86 % 15 % 85 %

The table above on gender distribution and non-Swedish background in the Axel Johnson Group reports results for Sweden. In Sweden, we measure company diversity through an anonymized analysis of employees’ social security numbers with the help of Statistics Sweden. Statistics Sweden defines international background as someone either born outside Sweden or with both parents born outside Sweden.

DIVERSITY GOALS FOR EMPLOYEES


OUR FOUR GOALSSince 2014, Axel Johnson has had goals regard-ing equal gender distribution among managers and the proportion of employees and manag-ers with an international background.

In 2021, we added two new goals. The goal of age distribution is that Axel Johnson should have at least 10 percent of employees and man-agers in each of five defined age groups.

The goal for inclusion is to have workplaces where employees feel a sense of belonging and are valued for their unique qualities. The level of inclusion will be measured through an employee survey on perceived inclusion

in our Group companies. We will monitor our own target development, and our companies will initially be able to compare their develop-ment with each other while waiting for other industry players to report on inclusion in the workplace.

Given the different focuses of our business-es, the issues and the possibility of goal fulfill-ment look different at different companies. The most vital function of the goals is not to be 100 percent applicable in every circumstance, but to provide direction for our companies and to create a common framework for our efforts on diversity and inclusion.

WE HAVE SEVERAL important partnerships that aim to create inclusive societies. We have just over 1,700 employees from disabled employ-ee organization Samhall in the group. We are co-owners of MITT LIV, a social enterprise specializing in diversity and inclusion and men-toring programs for non-Swedish academics. We are the main partner of THE GLOBAL VILLAGE FOUNDATION, which among other things arrang-es Järva Week, Sweden’s most important meet-ing place for issues of exclusion and inclusion.

OUR PORTAL ÖPPNADÖRREN is a gathering place for non-profit organizations that Axel Johnson supports that work for increased inclusion through creating meeting places.

YRKESDÖRREN is run by Axel Johnson and creates meetings between new and established Swedes to broaden professional networks. ÖppnaDörren and Yrkesdörren were created by Axfoundation 2015 and are currently operated within the busi-ness area Axelerate.

NYA KOMPISBYRÅN connects new and established Swedes over a coffee or dinner.

SVENSKA MED BABY brings together new and established Swedes with activities for parents of young children and their children. Svenska med baby and Nya Kompisbyrån are non-profit orga-nizations under the umbrella of ÖppnaDörren and supported by Axel Johnson.

Managers

Employees

Age distribution 2021

–29

30–39

40–49

50–59

60–

10 %

32 %

45 %

24 %

34 %15 %

22 %12 %

3 %4 %

Community initiatives and partnerships for inclusion

Axel Johnson’s Board Chair Caroline Berg participates in panel discussions at Järva Week 2021.



2018 2019 2020 2021 Goal 2030AXEL JOHNSON’S CLIMATE GOAL

49

1

AXFOOD

39

93

45

1,3

96

ÅHLÉNS

98

8 1,1

04

19

3

DUSTIN

18

11

75

17

3

KICKS

22

92

23

1,0

06

MARTIN &SERVERA

1,1

98

1,1

84

37

1

1,0

02

29

18

3

24

9

47

25

16

4

10

5

32

8

10

4

AXEL JOHNSON INTERNATIONAL

34

74

72

1,2

11

FILIPPA K

1,0

40

1,0

18

56

8

AXEL JOHNSON GROUP

51

4

The companies within Axel John-son strive to use resources effi-ciently and in a way that reduces the impact on the environment. Priority areas are to reduce energy consumption in stores,

offices and warehouses and to reduce emis-sions from our transport. We reduce the environmental impact of transport through streamlining, in the form of improved route planning and filling levels, as well as through a gradual transition to a more diversified and greener vehicle fleet.

COMMON GROUP CLIMATE GOALSIn 2018, Axel Johnson developed a Group-wide climate goal, based on the GHG protocol, which categorizes emissions in different areas.*

In 2020, we reached our interim target of a 25% reduction from the base year 2016, which was followed by continued positive development in 2021. Reasons for the reductions include more emission-efficient logistics and investments in energy efficien-cy in department stores and warehouses.

Another area, which we don’t measure but where our companies have an

impact, is to foster interaction through information and nudging our customers in order to impact climate change. These include Klubb Hemköp, which doubles the bonus on climate- and health-friendly prod-ucts; KICKS, which promotes environmen-tally friendly modes of transport by making these a pre-selected alternative; and Dagab, which develops new vegetarian products for Axfood’s own brands.

TAKING RESPONSIBILITY FOR THE VALUE CHAINFor commercial companies, the direct im-pact from our business is one we have imme-diate control over. At the same time, the vast majority of the value chain’s climate impact is in the production of the goods sold, and in some cases, in how they are used.

If we look ahead, it is our conviction that we also should take increasing responsibility for accounting for and reducing the climate impact of the products from other players that are sold within the framework of our business. As owner, Axel Johnson, like most of our companies, has begun the efforts of addressing the impact of goods sold and will set goals for this area as well.

EMISSIONS PER SEK MILLION SALES AND COMPANIES

2018–2021 AND GOAL 2030 (KG CO2E/SEK MILLION)

Axel Johnson's goal is to be climate neutral by 2030. This must be achieved to at least 85 percent through actual reductions in its own operations (base year 2016).

14

7

15

7

89

5

31

0

99

5

37

247

1

SOLAR POWER With AxSol, Axel Johnson has a Group company where growth harmonizes with climate benefits. Other Group companies also invest in solar energy, on their own store and warehouse roofs and now also on a larger scale. During the fall of 2021, Martin & Servera and Alight built Sweden’s largest solar park, which went into oper-ation at the beginning of 2022 and covers more than 40 percent of Martin & Servera’s electricity consumption.

In 2021, Axel Johnson and Axfood en-tered into an agreement with Alight to estab-lish two new parks, which will be Sweden’s largest, and more than doubles the total production of electricity from current large-scale solar parks in Sweden. These facilities are still awaiting regulatory approval.

SWEDEN’S BIGGEST SOLAR PARKSClimate

Moving in the right direction, but still much is needed to influence the entire value chain.

TRANSPORT Axfoods’ and Martin & Servera’s vehicle fleets are gradually switching to a larger share of biofuels and electrified trucks. In the fall of 2021, Martin & Servera signed an agreement with Volvo for the purchase of six heavy electric trucks, which was Volvo’s largest single order to date from a Swedish company.

The quiet, electric and emissions-free trucks will be used in sev-eral stages, which is expected to reduce the total number of vehicles in Martin & Servera’s fleet. With electric trucks’ lower engine noise,

there are greater opportunities to drive even in urban environ-ments at night with reduced driving times and emissions as a result. Potentially, by utiliz-ing a larger proportion of the hours of the day, an electric truck could thus replace several fossil-powered vehicles.

NEW ELECTRIC VEHICLES

*Axel Johnson has chosen to include in the goal: emissions from the entire Scope 1, which includes the combustion of fossil fuels, for example, for production in owned factories or for emissions from owned or leased vehicles; the entire Scope 2, which includes consumption of electricity, heating and cooling; and two parts of Scope 3 – business trips as well as incoming and outgoing transport. 36 AXEL JOHNSON ANNUAL REVIEW 2021 AXEL JOHNSON ANNUAL REVIEW 2021 37


Circularity

AXFOOD AND MARTIN & SERVERA both aim to halve their food waste by 2025. The single most important tools in these efforts are optimized purchasing and a more flexible pricing of prod-ucts that risk going to waste.

Axfood is also a co-founder of Matmissionen, low-income food stores that sell food that would otherwise be thrown away. Through Svensk Dagligvaruhandel, Axfood and the rest of the industry will open three more low-income food stores in 2022 – a collaboration estimated to reduce annual food waste by almost 3,300 tons.

During 2021, Martin & Servera developed Raddamat.se – a new e-commerce solution that gives all customers the opportu-nity to buy food that risks going to waste. The platform has also

been opened to other suppliers with goods that cannot be sold in regular assortments. This enables reduced waste even upwards in the supply chain and at the same time creates a new business for Martin & Servera.

FOOD WASTE CUT BY HALF

What measures that increase circularity have in common is they reduce the need for new raw materials. This can be achieved, for example, through extended product life, resales, sharing, reduced waste or improved industrial cycles.

For several years, Dustin has offered to buy back customers’ used IT products, which extends the life of the second-ary market. The secondary buyers are often educational institutions, which receive quality-assured products at a good price. In 2021, Dustin scaled up its operations by establishing a recovery center in Växjö.

THE NUMBER OF TAKE-BACKS – mostly laptops – increased sharply during the year, from 57,000 to just over 90,000 units. About 90 percent of

the products can be reused, instead of steadily losing value in an IT department’s storage or at home in employees’ closets. By managing the take-back internally, Dustin can also take responsibility for the entire take-back procedure, from collection and transport until the equipment gets a new owner. The take-back pro-gram has now reached such a scale that it is a profitable business on its own and contributing to change based on both the customers’ and Dustin’s sustainability goals.

Increasing the degree of circu-larity is a crucial move to create change in a global IT industry with increasing use of virgin raw materi-als and increasing electrical waste. Among Dustin’s sustainability goals is to become a 100% circular busi-ness in 2030. The take-back service is an important tool, and a possible next step is to start selling used products online in collaboration with Dustin’s suppliers.

DUSTIN

HOW IT WORKS:

1. The customer orders a Dustin Safebox and deposits the used equipment there.

2. The product is picked up and delivered to Dustin’s recovery center in Växjö, where the hard drive is deleted and anonymized in a secure manner and the customer is paid.

3. Finally, one of Dustin’s approved partners buys the product, which is then resold to a new customer in the secondary market.

INTEGRATED ACQUA-CULTURE AND FARM-ING AT GÅRDSFISK

NOVAX Axel Johnson’s investment company Novax during the year invested in Gårdsfisk, a manufacturer of land-based fish farming technology and a producer of fish raised on farmland. The investment will help Skåne-based Gårdsfisk to accelerate production, technology development and distribution to make it even easier for Swedish consumers to gain access to good sustainably produced fish.

Gårdsfisk already sells its fish products under its own brand in Swedish grocery stores. The business is based on driving technology development centrally, while fish farming takes place with local farmers. In agriculture, the by-products created by fish farming are used, such as detritus and water. In this way, a high-tech and integrated aquaculture and agriculture is created. Gårdsfisk’s entire system is designed to minimize envi-ronmental impact, with the ambition of creating the world’s most sustainable fish.

90,000 RETURNED PRODUCTS – with an aim of 100% circularity


H Å L L B A R H E T

AXFOUNDATION – our closest partnership

ANTONIA AXELSSON JOHNSON started the Axfoundation in 1993 as an independent, non-profit business with the aim of working concretely and practically with sustainability issues – with innovation and a belief in entrepreneurship as a force for change as a starting point. Activ-ities include close collaborations with companies, researchers and civil society and span three areas:• Food of the future,• Circular economy,• Sustainable production and

consumption.

The Axfoundation is completely in-dependent of Axel Johnson, but col-laborates with us and our companies in a number of individual projects. Here are three examples from 2021:

RAINBOW TROUT RAISED ON INSECTS: Our food should preferably not eat the food we eat. This is one of the basic ideas behind Sweden’s first circularly raised rainbow trout. The Axfoundation, together with the Swedish University of Agricultural Sciences and actors from the entire food chain, has proven that it is possible to grow an environmental-ly friendly and tasty Swedish fish on a large scale while utilizing an unused raw material resource in the form of food waste from industry. Instead of conventional feed, with imported soy and imported wild-caught fish, the rainbow trout from Älvdalslax is raised on a Swedish circular fish feed consisting mainly of insects. They have in turn eaten organic waste from, among others,

Grönsakshallen Sorunda in the form of peels, cores and bread leftovers. In total, the project has produced over four tons of green rainbow trout, which in 2021 will be sold at Hemköp and selected restaurants, including Urban Deli.

THE SWEDISH WOOL INITIATIVE: Swe-den imports large quantities of wool, at the same time as barely half of the wool produced by Swedish farmers is utilized – which is a huge waste of resources. With the vision “zero waste,” the Axfoundation is proj-ect manager for the Swedish Wool Initiative. The goal is to provide Swedish industry with a regionally produced, bio-based and recyclable material that enables the circular products of the future. In 2020, the

THE GLOBAL VILLAGE FOUND ATION (JÄRVAVECKAN)Political week Järvaveckan – Järva Week – was started in 2016 by Ahmed Abdirahman, with a vision to reduce the distance between politics and citizens and counteract exclusion in vulnerable suburbs. Axel Johnson joined in 2018 as the main partner for Järvaveckan and The Global Village Foundation and has now extended the partnership until 2023. The Global Village has become a central point in the Swed-ish debate and the dissemination of knowledge about issues related to integration and development in segregated Swedish areas.

LIVING HISTORY FORUM/ NATUR & KULTURDuring the academic year 2020/2021, Axel Johnson carried out a project for the second time to-gether with the Living History Forum

and publishing house Natur & Kultur, where

we donated Hédi Fried’s books Ques-tions I Am Asked About the Holocaust

and The Story of Bodri – 50,000 copies to Swed-

ish ninth graders and primary school classes respectively. In addition, all class teachers received a guide to support the work with the books.

FUTURE WORK FORUMThe Future Work Forum (FfO) was established in 2018 with the aim of strengthening Sweden’s conditions to meet the changes that are taking

place in digitalization, automation and new business models. Axel Johnson is one of the companies that via FfO contributes to dialogue and concrete proposals for a suc-cessful structural transformation.

STOCKHOLM SCHOOL OF ECONOMICSAt the Stockholm School of Econom-ics and its Center for Retailing (CFR), education and research are conducted in close collaboration with the Swedish retail trade. The center is responsible for the school’s three-year bachelor’s program in Retail Management, in which Axel Johnson participates.

DIGITAL IDAGAxel Johnson participated, partly through the Future Work Forum (left), in 2019 at the launch of a national day aimed at disseminating knowledge and discussing the possi-bilities, challenges and consequenc-es of digitalization, with the aim of helping us shape the best possible digital society. In 2021, Digital Idag, the digital national day, grew to 285 activities in 110 locations around Sweden, with 215 actors from business, the public sector, the trade union movement and the university world participating. Axel Johnson’s Board Chair Caroline Berg, who sits on the board of the Future Work Forum, participated and Dustin, KICKS, Mat.se and Axel Johnson International arranged or participated in seminars.

PARTNERSHIPS

Rice in PakistanRainbow trout raised on insects The Swedish wool initiative

investment involved a number of partners in the Swedish wool value chain, including Filippa K.

RICE IN PAKISTAN: Basmati rice from Pakistan is high quality, but for growers the conditions are often difficult. Through long-term efforts since 2015, the Axfoundation, Axfood and Oxfam have contributed to bet-ter conditions for more than 2,500 small-scale rice farmers and seasonal workers in Pakistan. New, sustain-able cultivation methods have led to reduced carbon dioxide emissions, less water consumption and lower chemical use. In addition, the work has contributed to empowering wom-en and increasing their income by up to 40 percent. A good Garant-brand rice has gotten better.

In addition to the day-to-day operations of our companies, we also participate in a number of partnerships that contribute to sustainable development for us and the surrounding world.


Our Group Companies



Axel Johnson International is an industry group that acquires and develops technology-driven industrial companies in strategic niche markets. The group com-prises 170 companies in 33 countries.

Net sales: SEK 12.93 billionProfitAX: SEK 999 millionAverage number of employees: 4,975Ownership: 100 %

MARTIN & SERVERA

Martin & Servera is Sweden’s leading restaurant wholesaler and delivers beverages, fresh produce, food, equipment, services and knowledge to restaurants and caterers daily. The Martin & Servera group consists of the parent company Martin & Servera and the subsidiaries Martin & Servera Restauranghandel with restaurant stores, Martin & Servera Logistik, Grönsak-shallen Sorunda, Fiskhallen Sorunda, Galatea and Köt-thallen Sorunda.

Net sales: SEK 13.09 billion

ProfitAX: SEK 208 millionAverage number of employees: 2,818Ownership: 100 %

AXFOOD

Axfood is a leading group in the grocery industry in Swe-den with food concepts such as Willys, Hemköp, Tempo and Handlar’n. Wholesale sales take place through the Axfood Snabbgross chain. The support company Dagab is responsible for the group’s product development, pur-chasing and logistics. The Axfood family also includes Middagsfrid, Urban Deli and partly-owned Apohem, Euro-cash, City Gross and Mathem.

Net sales: SEK 57.89 billionProfitAX: SEK 2.58 billionAverage number of employees: 12,202Ownership: 50.1 %

NOVAX

Novax is an active and long-term owner partner that invests in small and medi-um-sized growth companies. Wholly and partly owned companies include Academic Work, Accessy, ApoEx, Apohem, Auctionet, Aqua Dental, Bruce, Datema, Dentech, Disruptive Materi-als, Filippa K, Färsodlarna, Gårdsfisk, Hedvig, Leeroy, Madden Analytics, Matsmart, OneLab, Personalkollen, Prolupin, RCO, STC, Ulrick & Short, Unloc, Voyado and Winnow.

Total sales in Novax compa-nies: SEK 1.64 billionProfitAX: SEK 17 millionOwnership: 100 %

DUSTIN

Dustin is a leading online IT partner with operations in the Nordic and Benelux regions. The company offers IT prod-ucts with related services and solutions to companies, the public sector and private indi-viduals, with the main focus on small- and medium-sized businesses.

Net sales: SEK 15.87 billion*ProfitAX: SEK 469 million*Average number of employees: 1,858Ownership: 27.3 %

*Refers to the fiscal year September-August

ÅHLÉNS

Åhléns is Sweden’s leading department store chain, which offers its own and ex-ternal brands in beauty, home and fashion via department stores and åhlens.se. Åhléns Outlet and Designtorget are subsidiaries.

Net sales: SEK 4.74 billionProfitAX: SEK -152 millionAverage number of employees: 1,629Ownership: 100 %

KICKS

KICKS is the leading beauty chain in the Nordic region and offers an omni-chan-nel concept with products and services in makeup, fragrance, skincare and hair care.

Net sales: SEK 3.63 billionProfitAX: SEK 70 millionAverage number of employees: 1,367Ownership: 100 %

INVESTMENTS OUTSIDE THE GROUP COMPANIES

Since April 2021, Axel Johnson has been the full owner of Skincity, an online skincare clinic that offers advice and a carefully selected range of professional skin care and skincare makeup. Today, Skincity is present in four markets: Sweden, Norway, Finland and the United Kingdom.

OUR GROUP COMPANIES

O U R G R O U P C O M P A N I E S

AXSOL

AxSol is the Group’s youngest company, which was started around the turn of the year 2019/2020 to raise invest-ments in the solar energy sector. Investments have so far been made in the compa-nies Alight, Otovo, Svea Solar, Solkompaniet, EnergiEngage-mang and Epishine.

Total sales in AxSol companies: approximately SEK 1.99 billionOwnership: 100% in AxSol, ownership interest in the port-folio companies varies.



RECORD PROFITSThe year 2021 was eventful for Axel Johnson International and the group’s 170 companies. Despite challenges with component short-ages, price increases and transport difficulties, net sales grew and amounted to SEK 12.9 (11.6) billion, driven by both organic growth and acquisitions.

International entered the indus-trial automation segment, and in October 2020, Danish company Caldan Conveyor A/S was acquired. These companies form the basis for the new business area Industrial Automation, which was formed in 2021. The focus for the business area will primarily be on solutions for intralogistics for factories, food processing, primary packaging and automation components.

EXPANSION INTO NEW MARKETSAxel Johnson International strength-ened its presence in Australia and New Zealand through acquisitions of five companies in the Lifting Solu-tions business area and two addition-al acquisitions in the Fluid Han-dling Solutions business area. The expansion into new markets and new market segments continues as part of the group’s renewal strategy and the diversity of segments and regions contributes to stability. Based on a proven strategy and strong business models, the goal is also to continue to grow faster than each market with a balanced combination of organic growth and acquisitions.

Profit amounted to SEK 999 million, compared with SEK 816 million the previous year. In 2021, a total of 15 companies in 11 countries were acquired. The acquisitions are both new investments and additional acquisitions in existing companies.

STRENGTHENED SUSTAINABILITY FOCUSDuring the year, a new sustain-ability strategy was developed to strengthen efforts in pursuing sustainability transformation in in-dustry. Sustainability is part of Axel Johnson International’s strategic and long-term ownership agenda. To ensure sustainability in all parts of the value chain, the strategy is based on three focus areas: the supplier level, the operations and the customer offering. For each area, there are goals linked to social sustainability, climate and circular materials and products.

NEW BUSINESS AREA IN INDUSTRIAL AUTOMATIONThe pace of automation in industry remains high. Through the acqui-sition of Swedish company OCS in December 2018, Axel Johnson

OCS Overhead Conveyor Systems, one of the compa-nies within Axel Johnson International’s new busi-ness area Industrial Automation, has delivered an automatic transport system to the Swedish vertical

cultivation company Ljusgårda’s lettuce cultivation. Ljusgårda’s production, which until then had been

managed on a smaller scale of 650 square meters, has been transformed into an automated production system totaling 7000 square meters, with ambitions for contin-ued expansion and growth.

LJUSGÅRDA CONTACTED OCS and requested a solution to handle the transport of 2.5 meter long vertical pipes for lettuce cultivation through various stations and stages in cultivation – from sowing to irrigation, harvesting, sort-ing, packaging, storage and distribution.

THE SOLUTION FROM OCS was a system with carts that handle 12 pipes at a time throughout the process. Lighting and ventilation are integrated with the conveyor system and irrigation takes place automat-ically from the pipes above the carts. At maximum capacity, the system holds approximately 300,000 plants which are then distributed to over 800 stores around Sweden every week.

AUTOMATION makes vertical cultivation possible

A year focused on transformation, a new business area within industrial automation and acquisitions, ending in record profits of SEK 999 million. The result was achieved despite turbulent market con-ditions with component shortages, transport difficulties and price in-creases for companies.

F A C T S

K E Y F I G U R E S

Axel Johnson International is an industry group that acquires and develops technol-ogy-driven industrial companies in strate-gic niche markets. The group comprises 170 companies in 33 countries.

Ownership: 100 %

Business areas: Driveline Solutions, Fluid Handling Solutions/AxFlow, Industrial Automation, Lifting Solutions, Power Transmission Solutions and Transport Solutions

Number of employees: 4,975

Website: www.axinter.com

F

K


SEK million 2021 2020

Net sales 12,938 11,632

ProfitAX 999 816

Profit after net financial items

421 472

300,000PLANTS IN THE SYSTEM OCS BUILT FOR VERTICAL CULTIVATOR LJUSGÅRDA



GOOD AFFORDABLE AND SUSTAINABLE FOODThe grocery industry is less sensi-tive to the economic cycle than oth-er industries and is mainly affected by population growth and inflation. But it is affected by industry shifts and demographic changes, as well as broad societal trends such as digita-lization, health awareness, sustain-ability and affordability. Axfood’s various concepts are well positioned in their respective segments and make affordable, good and sustain-able food available to everyone.

market position. In addition, an agree-ment was entered into for a strategic collaboration with Mathem, where Axfood will be second largest owner through the divestment of Mat.se.

OPTIMIZED LOGISTICS PLATFORMAxfood continues to invest in an efficient and sustainable supply of goods through a top-class nation-wide logistics platform. The new highly automated logistics center for stores and e-commerce in Båls-ta is supplemented with a new and automated e-commerce warehouse and expanded high rack storage in Backa in Göteborg, as well as a new, larger and partially automated all-Sweden warehouse for fruit and vegetables in Landskrona.

SUSTAINABLE FOOD SYSTEM LEADERDuring the year, Axfood continued to take the lead in sustainable food systems, committing to and serving as inspiration on good and sustain-able food. Important themes during the year included product range de-velopment, reduced food waste and continued investments in renewable energy and sustainable logistics.

STRENGTHENED MARKET POSITIONSWith the gradually eased pandemic restrictions, the dynamics of the grocery industry changed in 2021. The flow of customers to stores in metropolitan locations and in bor-der trade increased, and the restau-rants and service industry gradually recovered. Growth in e-commerce was significantly lower than in 2020, when certain consumer groups returned to shopping in physical stores. With growth in store sales of 1.9 percent and e-commerce of 31 percent, Axfood once again grew faster than the market both in stores and online. Profitability was maintained and the operating margin was 4.7 percent.

CONTINUED FUTURE INVESTMENTSThe pace of Axfood’s future invest-ments increased during the year, and in addition to continued focus on digitalization, health, sustain-ability and value for money, two important structural deals were made. The acquisition of the whole-sale business Bergendahls Food and the partnership with City Gross offer synergies and strengthen the

In 2021, Willys became the first Swedish food player to reach break even in e-commerce for food. But sibling chain in the Axfood family, Hemköp, also took big steps forward in its e-commerce offer. At the begin-

ning of 2021, 48 of Hemköp’s stores offered e-commerce, a figure that by the end of the year had risen to include 70 of the total of almost 200 Hemköp stores. Even among the retailer -owned stores, more and more are offering e-commerce.

WILLYS – growing and profitable e-commerce

The year 2021 was proba-bly the most intense in Ax-food’s history. The compa-ny again grew faster than the market, announced new large logistics invest-ments and wrote grocery history with the acquisi-tion of Bergendahls Food and the partnership with City Gross.

F A C T S

K E Y F I G U R E S

Axfood is a leading group in the grocery industry in Sweden with food concepts such as Willys, Hemköp, Tempo and Handlar’n. Wholesale sales take place through the Axfood Snabbgross chain. The support company Dagab is responsi-ble for the group’s product development, purchasing and logistics. The Axfood family also includes Middagsfrid, Urban Deli and partly-owned Apohem, Eurocash, City Gross and Mathem.

Ownership: 50.1 %


Website: www.axfood.se

F

K

AXFOOD


Net sales 57,891 53,696

ProfitAX 2,582 2,394


2,582 2,394

31.3 %Axfood’s

e-commerce growth in 2021


THE MARKET: STRUCTURAL GROWTH, MESSY SUPPLY CHAINSThe solar energy market in Sweden and Europe as a whole was charac-terized in 2021 by strong underlying demand, but also by supply prob-lems. Due to, among other things, quadrupled silicon prices, solar panel prices were 15–30 percent higher than the previous year.

The Swedish consumer market showed strong growth during the year, strengthened by a more level

uals with installers and producers. Through Otovo’s platform, based on property data, consumers can receive automated quotes from affiliated assembly companies. During the year, Otovo continued its international expansion to Italy, Spain and Germany. The year end-ed very strongly with an escalation in both completed installations and placed orders compared to the same period last year, which strengthens the conviction that Otovo’s model is internationally scalable.

Alight has worked on developing a number of large solar park proj-ects during the year, including the completion of Martin & Servera’s park outside Skurup in Southern Sweden. An agreement was entered into with the Axel Johnson Group and Axfood to build new solar parks, which, however, awaits regu-latory approval before construction can begin.

Svea Solar has continued to develop its business model in all segments, with growth primarily on the consumer side in both the Swedish and European markets.

playing field in the form of a solar tax deduction of 14.5 percent of the cost. The commercial segment, which includes solar panel instal-lation on larger buildings such as warehouses and store roofs, experi-enced a weak order intake for most of 2021, but gained momentum during the last months of the year.

The area we see the greatest growth potential for in the coming years in the Swedish market is in the expansion of large-scale solar parks, which have seriously begun to gain momentum in Scandinavia. AxSol aims to be a leading player in this development.

GROWTH IN ALL HOLDINGSAll AxSol companies continued to grow during 2021. Solkompaniet, like most industry peers, has had significant challenges related to the sourcing of panels. Solkompaniet is now accelerating its focus on large-scale photovoltaic systems. AxSol made an additional investment in Solkompaniet in 2021 and became majority owner at the beginning of 2022.

Otovo connects private individ-

I n June, AxSol led a funding round in the re-search-based company Epishine. The company man-ufactures printed flexible solar cells that are used to power IoT products indoors. Epishine grew out of 30

years of research and is at the beginning of its journey to become a business.

IN THE SUMMAR, AxSol became the majority owner of EnergiEngagemang, a leading turnkey supplier of solar cell solutions for commercial and large-scale solar plants, with a focus on the Swedish market, which is in line with AxSol’s focus. Through ownership in EnergiEngagemang, Solkompaniet and Alight, AxSol and Axel Johnson are a leading force in the expansion of large-scale solar energy efforts in Sweden.

TWO NEW AXSOL COMPANIES

AxSol comprises our solar energy companies, and in 2021 investments were made in two new companies. The year was otherwise characterized by strong demand, but also by challenges in the supply chain and pro-tracted permit processes that delay the establish-ment of large-scale solar energy.

F A C T S

AxSol is the Group’s youngest company, which was started around the turn of the year 2019/2020 to raise investments in the solar energy sector.

Ownership: 100 % in AxSol, which has a varying ownership interest in the portfolio companies Alight, EnergiEngagemang, Epishine, Otovo, Solkompaniet and Svea Solar.

Number of employees in AxSol companies: around 500

Sales for AxSol companies: SEK 1.99 billion

Website: www.axsol.se

F

AXSOL



Be completely climate-neutral.


FAVORABLE MARKET TRENDS The year has been marked by a pandemic that has provided both opportunities and challenges. Hybrid work is here to stay, resulting in both increased sales of equipment for home offices and updates of conference rooms in company offices to offer better video meetings. Other market trends that benefit Dustin, such as increased online shopping and a focus on mobility, security and integrity, were further strengthened during the year.

At the same time, the industry

make clearer the climate impact on the company and what the com-pany can do to create a positive change, accounting has been im-plemented in accordance with the Task Force on Climate-Related Fi-nancial Disclosures. The company has also included Scope 3 emissions from the Greenhouse Gas (GHG) Protocol in its reporting.

A strong focus on sustainability also provides new business opportuni-ties, such as increased investments in take-backs and reuse of IT products. During 2021, Dustin started its own facility for taking back IT products.

CONTINUED GROWTHSales increased during 2020/21 by 20.3 percent, of which 9.6 percent was organically, to SEK 15.87 billion and adjusted EBITA increased by 46.6 percent to SEK 759 million. The gross margin amounted to 15.6 percent and is affected by higher volumes, increased sales of own branded goods and an active pricing model that compensated for a changed customer mix in connection with the acquisition of Centralpoint.

has been marked by component shortages and disruptions in supply chains. Thanks to long-term plan-ning and a good relationship with partners, Dustin has nevertheless had good access to products.

STRENGTHENED POSITION IN EUROPEIn June, Dustin acquired Dutch company Centralpoint and thus became a leading online-based IT partner in the Benelux region. Cen-tralpoint has a very strong position in large companies and the public sector. In combination with Dustin’s offering to small and medium-sized companies as well as the oppor-tunity to scale up Dustin’s online model, conditions are in place for continued growth. Dustin is now the eighth largest IT partner in Europe.

SUSTAINABILITY IN FOCUSHaving a long-term sustainable strategy is at the heart of Dustin. During the year, work towards the 2030 goals continued. By 2030, the company will be climate-neutral in the entire value chain, be complete-ly circular and have implemented 100 measures for social equality. To

THE IT INDUSTRY’S MOST AMBITIOUS

SUSTAINABILITY GOALS

In 2021, through the ac-quisition of Centralpoint, Dustin has become a lead-ing online-based IT part-ner not only in the Nordic but the Benelux region. This sets the foundation for continued growth and export of the company’s business model.

F A C T S

K E Y F I G U R E S

Dustin is a leading online IT partner with operations in the Nordic and Benelux regions. The company offers IT products with related services and solutions to companies, the public sector and private individuals, with the main focus on small- and medium-sized businesses.

Ownership: 27.3 %


Website: www.dustin.se

F

K

DUSTIN

SEK million 2020/21 2019/20

Net sales 15,878 13,195

ProfitAX 469 335


469 335

By 2030, Dustin will:

Be 100 percent

circular.

Have implemented 100 measures

for social equality.

1

2

3



STRONG GROWTH IN STORESDuring 2021, the pandemic contin-ued to affect operations to varying degrees. During the first half of the year, the business was clearly affected by the situation, including a lock-down with closed stores in Norway. In step with increased vaccination rates and eased restric-tions during the fall, buying behav-iors have returned more to patterns

a new in-store service solution, as well as a new delivery method, click express, where you combine online shopping with express delivery with the experience of a store visit. In a handful of stores, KICKS has also launched a pilot: Treat by KICKS, a new concept with modern beauty treatments, which has received a very positive response from cus-tomers. CLIMATE, DIVERSITY AND INCLUSIONA new diversity and inclusion strat-egy has been developed to move the company from individual initia-tives to a defined footprint that is measurable and long-term. The strategy addresses recruitment and promotion, as well as values, community involvement, business development and marketing com-munication.

KICKS has also developed new climate goals to reduce emissions from transport and manufacture of the products the company sells, but also to guide and inspire employees and customers to make sustainable and emission-reducing choices.

before the pandemic, with a strong recovery in stores. Online sales have also increased significantly, and for the full year, e-commerce accounted for 26 percent of total sales. Sales landed at a total of SEK 3.63 billion with a profit of SEK 70 million.

NEW COMMUNITYAn important and long-term invest-ment is the launch of KICKS Beauty Talks, a community for beauty enthusiasts, opening up further digital opportunities for interac-tion and a closer relationship with customers. Another significant channel for guiding and advising customers is streamed live shop-ping, which KICKS continues to invest in.

STRENGTHENED OMNICHANNEL OFFERINGThe focus going forward is to con-tinue to develop the company’s omnichannel offering, strengthen the customer experience and take service to the next level. For a bet-ter and smoother customer journey, KICKS has rolled out self checkout,

Since Axel Johnson originally invested in the com-pany in 2017, Skincity’s sales have doubled from SEK 277 million in sales at the time. What was in 2017 a distinctly Swedish business now has sales

outside Sweden accounting for over 30 percent of sales. From not having any own brands three years ago, today unique Skincity products account for an increasing share of sales.

IN 2021 Axel Johnson became a full owner of Skincity by acquiring founders Mikael Kjellman and Annica Forsgren Kjellman’s share of 18 percent.

AFTER A STRONG 2020, where the pandemic drove e-com-merce growth, Skincity had a tougher 2021, when customers during the fall increasingly found their way back to physical stores. Going forward, Skincity aims to continue its shift from start-up to a strong and differentiated beauty player in its niche, in a significant number of markets.

SKINCITY – an online skincare clinic

The year 2021 was strong for KICKS, with increased online sales and a robust recovery in stores. Sales grew by more than 10 percent. The company has continued to strengthen its position, both through increased investments in the digital customer experience and the launch of more flex-ible service and delivery solutions.

F A C T S

K E Y F I G U R E S

KICKS is the leading beauty chain in the Nordic region and offers an omni-chan-nel concept with products and services in makeup, fragrance, skincare and hair care.

Ownership: 100 %


Webpage: www.kicks.se

F

K

KICKS


Net sales 3,633 3,314

ProfitAX 70 37


70 23

>80Skincity has committed

customers and an NPS of over 80 in all its markets



FROM INDUSTRY IN CRISIS TO POWERFUL RECOVERYThe first half of 2021 was a tough period for the restaurant industry and so also for Martin & Servera. With summer weather and eased restrictions, the situation changed. Demand increased rapidly due to a pent-up need to socialize in restau-

able energy is being made through the construction of its own solar park. Digitalization with customer value in focus continued with the site “Rädda mat” (save food) which makes it easier for Martin & Serve-ra’s customers and suppliers to be involved and reduce food waste.

CUSTOMER FOCUS, SUSTAINABILITY AND DIGITALIZATIONMartin & Servera is investing in growing faster than its competi-tors in the restaurant market, as the social situation is normalizing. Growth in beverages continues. Galatea acquired major beverage brands to further strengthen its customer offering.

The focus of the development efforts is on solutions that can drive positive change for the restaurant industry. This involves, for exam-ple, increasing the proportion of plant-based proteins and locally grown products, making it easier for customers with digital services and well-honed e-commerce, and contributing to increased diversi-ty and healthy workplaces in the restaurant industry.

rants and bars and meet in person on the job. But the recovery was un-even and some customer segments, such as hotels, continued to face major challenges.

The tough readjustment mea-sures and cost reductions that Mar-tin & Servera implemented earlier during the pandemic contributed to earnings during the second half of the year coming in strong, with several record months. As a result, Martin & Servera’s sales for the full year increased to SEK 13.1 (12.1) billion, while earnings improved to SEK 208 (-62) million, despite heavy losses during the first four months of the year.

CLIMATE-NEUTRAL OPERATIONS ARE THE GOALMartin & Servera Logistik reached its goal of energy-efficient ware-houses with the opening of a new warehouse in Norrköping. Martin & Servera introduced the industry’s first heavy vehicle powered by 100 percent electricity. Major invest-ments were made in electric and biogas vehicles.

A major investment in renew-

During the summer of 2021, beverage supplier Galatea acquired several classic Swedish brands, including Skåne Akvavit and Hallands fläder. The acquisition further broadens and strengthens the

brand portfolio for both private customers and restau-rants.

Galatea is one of the country’s largest suppliers to Swedish government alcohol monopoly Systembolaget and has been part of the Martin & Servera group since 2014. The company was started in 1997 and today includes Sigtuna Brygghus and Domaine Wines Sweden. The range includes over a thousand items, most of which consist of Scandinavia’s largest beer imports.

GALATEA ACQUIRES CLASSIC BRANDS

Restaurants forced to close at 8 p.m. made a tough start to 2021, but summer heat and lifting restrictions contributed to a rapid recovery in the second half of the year. Martin & Servera has taken important steps forward in sustainable logistics, digitalization and development of assortment and services, to become a restaurant’s best partner.

F A C T S

K E Y F I G U R E S

Martin & Servera is Sweden’s leading restaurant wholesaler and delivers bev-erages, fresh produce, food, equipment, services and knowledge to restaurants and caterers daily. The Martin & Servera group consists of the parent company Martin & Servera and the subsidiaries Martin & Servera Restauranghandel with restaurant stores, Martin & Servera Logistik, Grön-sakshallen Sorunda, Fiskhallen Sorunda, Galatea and Kötthallen Sorunda.

Ownership: 100 %


Website: www.martinservera.se

F

K

MARTIN & SERVERA


Net sales 13,092 12,086

ProfitAX 208 -62


163 -246

45%of Swedes’ alcohol

consumption consists of wine.

Source: Systembolaget



FOCUSED INVESTMENTSIn January, Novax invested in Aqua Dental, the fastest growing private dental care player in Sweden. The ambition is to continue to grow through focusing on quality in both dental care and customer service. By reaching the large group that today has no regular dental care contact – which poses great risks for dental health – there are great opportunities to combine patient, societal and business benefits.

recruitment platform in which most of the companies participate.

During the year, a number of recruitments were made for key po-sitions. Anders Carlbark took over as CEO of STC, while Rikard Frost, pre-viously of Alexander Wang and Acne, became the new CEO of Filippa K.

Even the Novax team was strengthened during the year with new employees.

PARTNERSHIP FOR BROADER ENTREPRENEURSHIPIn 2021, Novax partnered with the Shift initiative, which aims to strengthen entrepreneurship outside environments and networks that traditionally attract investment. This applies to the suburbs of large cities, as well as contractors outside met-ropolitan areas. A survey in January 2021 showed that only two percent of leading venture capital players’ investments in Swedish companies were made in companies outside city centers. Shift was awarded the Swed-ish Grand Prize for Journalism in the category Innovator of the Year 2021, and Novax will continue as a proud partner in 2022.

In the health area, STC acquired the fitness chain Puls & Träning, which makes STC Sweden’s second largest chain in terms of number of facilities. In addition, an investment was made in OneLab’s digital plat-form for occupational health.

In the arena of food of the future, Novax became majority owner of Ulrick & Short (see p. 59). Novax’s ambition together with the founders is to grow outside its British home market. In the food area, the company Färsodlarna was formed with a focus on con-tinued commercialization of the lupine-based veggie mince product developed by Axfoundation.

In the areas of technical security and retail tech, additional invest-ments were made in connection with RCO’s investment in Easy Access, and Voyado’s acquisition of Apptus.

PEOPLE & CULTUREThe ability to recruit, develop and retain key competencies is a common challenge for Novax companies. Therefore, Novax has launched a talent forum for the companies, as well as a common

Novax has identified the food value chain and the food of the future as a priority

area for investment and growth. In the spring of 2021, Novax became the majority owner of British compa-ny Ulrick & Short, which specializes in plant-based, natural “clean label” ingredients for the food industry. The company acts as a partner for food producers who want to develop new clean label products or develop an existing product range towards healthier alternatives.

ULRICK & SHORT – Ingredients for healthy and wholesome food

Novax continued to deepen its presence in health, food of the future, technical security and re-tail tech, in terms of both investments and sector expertise. This year’s largest new investments were made in the dental care chain Aqua Dental and in the British food tech company Ulrick & Short.

F A C T S

N E T S A L E S

Novax is an active and long-term owner partner that invests in small and medi-um-sized growth companies.

Ownership: 100 %

Website: www.novax.se

F

N

NOVAX

SEK MILLION 2021 2020 Ownership

Filippa K 494 534 Majority

RCO 419 311 Majority

Datema 86 160 Majority

Academic Work 3,353 3 353 Minority

ApoEx 7,509 6 647 Minority

STC 523 378 Majority

Voyado 250 160 Minority

Apohem 232 137 Minority

Personalkollen 35 30 Minority

Leeroy 16 8 Minority

Aqua Dental 374 305 Minority

Bruce 40 42 Minority

Ulrick&Short 132 113 Majority

Färsodlarna 3 - Majority

Onelab 30 19 Minority

Total 13,496 12,197



GROWTH IN ALL CHANNELSSales in the stores, mainly around the city centers, were severely affected by restrictions at the beginning of 2021, after which sales developed positively during the summer and onwards. Sales for the full year increased despite seven store closures. Continued

Rosersberg outside Stockholm is expected to open in the summer of 2022. The resulting new and more efficient logistics with a high degree of automation will provide faster and smoother deliveries to customers and strengthen Åhléns’ e-commerce offering. For an even better customer experience, Åhléns’ customer service is being digitalized and further developed and the opportunity to deliver directly from store to customer is being launched.

OWN BRAND DEVELOPMENTDuring the year, Åhléns’ own brand Carin Wester took a new direction with inspiration from the brand’s DNA, and a new sub-brand, C.W by Carin Wester, was launched. In 2022, Åhléns’ transformation will continue with the goal of delivering on the new strategy in the future.

high demand online led to strong e-commerce growth.

During the year, there was a strong focus on implementing new future investments, adjusting the cost base, updating the operating model, and automating and stream-lining processes with the support of a new business system and data-driven decision-making.

NEW FUTURE STRATEGY AND INVESTMENTS Extensive customer segmentation has been carried out, which pro-vides insight into driving forces and the need to match customers’ pref-erences regarding product range, channels, experiences and prices. Continued investments are being made to strengthen the digital cus-tomer experience with increased personalization, and various de-livery options. New functionalities are now offered on åhlens.se to give customers a first-class experience with relevant and targeted offers.

INVESTMENTS IN FUTURE CUSTOMER EXPERIENCEÅhléns’ new robotic warehouse in

The subsidiary Åhléns Outlet opened its first store in 2018. In 2021, the Outlet stores showed strong growth with strengthened profitability.

During the year, three new stores opened and at the end of the year there were ten stores. Additional Outlet stores are planned to open in 2022.

ÅHLÉNS OUTLET

The year 2021 was about focusing on adjustment for the future. A new strategic direction was launched with the goal of becoming Sweden’s lead-ing e-retailer with optimal physical presence. Priori-ty investments in devel-oped customer offerings, strengthening the brand, growing e-commerce and increasing digitalization and automation were launched during the year.

F A C T S

K E Y F I G U R E S

Åhléns is an engaging world of brands and services where we constantly inspire the customer with new discoveries and experiences. With a focus on fulfilling the customer’s needs and dreams, we offer a curated range of carefully selected qual-ity brands and service in beauty, home and fashion in an inspiring and easily accessible way via our e-commerce and our department stores. Åhléns Outlet and Designtorget are subsidiaries.

Ownership: 100 %


Website: www.ahlens.se

F

K

ÅHLÉNS

SEK Million 2021 2020

Net sales 4,743 4,328

ProfitAX -152 -331


-152 -331

3new Outlet

stores in 2021

– a growing format


Organization & Financial Results


O R G A N I Z A T I O N & F I N A N C I A L R E S U L T S

BOARD OF DIRECTORS

CAROLINE BERG Caroline Berg, Board Chair since March 2015 and mem-ber of the Board since 2014. Caroline is also Board Chair of Martin & Servera, Vice Chair of Nordstjernan and a Board Member of Axfood, Axfast, Novax and the SSE Advisory Board. Caroline is also Chair of the Axel and Margaret Ax: son Johnson Foundation, the Erik and Göran Ennerfelt Founda-tion and The Global Village. Between 2006 and 2014, Car-oline was Director of Human Development and Communica-tion at Axel Johnson. Caroline has an honorary doctorate from the Stockholm School of Economics.

MARIE EHRLINGVice Chair and Board Member since 2012. Marie is Board Chair of Disruptive Pharma and Board Member of Axel Johnson International and Disruptive Materials. She is also Board Chair of the SSE Advisory Board and Member of the Wisory Advisory Board and the Royal Swedish Academy of Engineering Sciences (IVA). Previously, she served as Board Chair of Telia Company and Securitas and President of Telia Sonera Sweden. Prior to that, she worked for the SAS Group for 20 years in various roles, including as Head of SAS Airlines. She has an honorary doctorate from the Stockholm School of Economics.

ANTONIA AX:SON JOHNSON Member of the Board since 1982. Antonia is Board Chair of Axel Johnson Holding, and a Member of the Board of Axel Johnson Inc., Axfast, the Axel and Margaret Ax: son Johnson Foundation and the Axel and Margaret Ax: son John-son Foundation for Public Welfare and founder and member of Axfoundation. Antonia is founder and Board Chair of Lövsta Stuteri and holds honorary doctorates from the Royal Institute of Tech-nology in Stockholm and Middle-bury College in the U.S.

TOMAS FRANZÉN Member of the Board since 2018. Tomas is Board Chair of TietoEvry, Elajo and Bonnier News, among oth-ers, and a Board Member of Dustin, Martin & Servera, Thunderful Group and Liljedahl Group, among others. He was CEO of Bonnier AB in 2014–2018 and before that CEO of Com Hem and Eniro.

ALEXANDRA MÖRNER Member of the Board since 2005. Alexandra is also acting Board Chair of Axfoundation, Antonia Ax: son Johnson’s Foundation for Sustainable Development. Alexandra is a member of several boards within the Axel Johnson Group, including Axel John-son Inc., and has been so since the mid-1990s. She was previ-ously head of Axstore’s Retail Chains and before that Invest-ment Manager at Novax.

JONAS SAMUELSONMember of the Board since 2018. Jonas has been Presi-dent and CEO of Electrolux since 2016 and has been at Electrolux since 2008. He is also a board member of Volvo Cars and has previously worked in SAAB Automobile and General Motors, among others.

MEMBERS APPOINTED BY EMPLOYEE ORGANIZATIONS

ANDERS HELSINGMember of the Board since 2018. Anders is employed by Axfood IT AB and Employ-ee Representative for the Union. He is also an Employee Member of Axfood’s Board of Directors.

LILIAN MÅRELIUSMember of the Board since 2011. Lilian is employed by Åhléns and Employee Representative for the Commercial Employees’ Union.

RASMUS TALLÉNMember of the Board since 2000, alternate since 1999. Rasmus is employed by Martin & Servera and Employee Rep-resentative for the Commercial Employees’ Union. He is also a Board Member of Martin & Servera, Board Chair of the Commercial Employees’ Union and the Swedish Trade Union Confederation District in Stockholm as well as a representative to the national organization.



GROUP MANAGEMENT

SARA ÖHRVALLCHIEF OPERATING OFFICERSara joined Axel Johnson in August 2021 and has many years of experi-ence in leading positions with a focus on transformation, product and technology development, including as Chief Transformation Officer in Group Management at SEB, Head of R&D in Group Management at Bon-nier AB and Product Development Manager at Volvo Cars.BOARD POSITIONS: Member of KICKS, Novax, Skincity and Åhléns. Chair of the Pontus Schultz Foundation and Humla, as well as a Board Member of Bonnier Books, SNS and the international advisory board for the Stockholm Resilience Center.

JACOB WALLEVP, BUSINESS DEVELOPMENT Jacob joined Axel Johnson in 2015. He was previously a partner and advisor at ABG Sundal Collier and, prior to that, Senior Vice President and co-founder of Alcur hedge fund, and spent nine years as equity analyst at ABG Sundal Collier and Alfred Berg. He studied financial management, economic history and political science at Stockholm Uni-versity and Uppsala University.BOARD POSITIONS: Board Chair of Novax and Board Member of Skinci-ty, Electra Gruppen and New Moon.

CAMILLA WIDEROTHCHIEF FINANCIAL OFFICERCamilla has worked within the group since 2009, first at Axel Johnson International and then at Axel Johnson as Head of Group Financial Control. Prior to that, she worked for 15 years at KPMG, first as an accountant and then as a consultant in connection with listed companies’ adoption of IFRS. She studied international finance at Linköping University. BOARD POSITIONS: Board Member of Axel Johnson International, KICKS, Novax, Åhléns, Martin & Servera and Alight.

DAVID SALSBÄCKEVP, COMMUNICATION AND SUSTAINABILITYDavid joined Axel Johnson in 2019. He held several roles within Bonnier, where he was Director of Communications for the last five years. Prior to that, he worked at the global communications firm JKL in Stockholm and Brussels. He holds a Master of Science in Business and Economics from the Stockholm School of Economics.BOARD POSITIONS: Board Member of AxSol, KICKS and the Axfoun-dation.

MIA BRUNELL LIVFORSPRESIDENT AND CEO Mia was appointed CEO of Axel Johnson in 2015. Prior to that, she was an advisor and Board Member of the company. She held various positions at Kinnevik for 22 years, the last eight of which she served as CEO of Investment AB Kinnevik. She studied economics at Stock-holm University. BOARD POSITIONS: Board Chair of Axel Johnson International, Ax-food, Dustin Group AB, KICKS and Åhléns. Board Member of AxSol, Martin & Servera, Stena AB and Efva Attling Stockholm AB.

EMMA CLAESSON EVP, HUMAN RESOURCESEmma started at Axel Johnson in March 2020. She came most recently from the role of Director of Human Resources at technology consulting company AFRY (for-merly ÅF Pöyry). Before that, she was Human Resources Manager at SSAB and for ten years before that, a management consultant at Ac-centure. Emma studied economics at Uppsala University.BOARD POSITIONS: Board Member of Martin & Servera and Åhléns, and Board Chair of Mitt Liv.


GROUP INCOME STATEMENT

MULTI-YEAR OVERVIEW

Depreciation and write-downs included in the 2020 earnings

GoodwillOther

intangible TangibleAssociatedcompanies Total

Cost of goods sold -440 -175 -726 -1,341

Sales expenses -577 -76 -228 -881

Administrative expenses -73 -119 -142 -334

Other operating expenses -3 -4 -7

Shares in associated companies’ earnings -462 -462

-1,093 -374 -1 096 -462 -3,025

Depreciation and write-downs included in the 2019 earnings

GoodwillOther

intangible TangibleAssociatedcompanies Total

Cost of goods sold -332 -170 -719 -1,221

Sales expenses -486 -74 -257 -817

Administrative expenses -28 -129 -120 -277

Other operating expenses -2 -4 -6


-848 -377 -1,096 -318 -2,639

O R G A N I Z A T I O N & F I N A N C I A L R E S U L T SO R G A N I Z A T I O N & F I N A N C I A L R E S U L T S

Amount in SEK million 2021 2020

Net sales 94,685 86,864

Cost of goods sold -76,335 -70,315

Gross profit 18,350 16,549

Sales expenses -11,126 -10,378

Administrative expenses -5,984 -5,462


Other operating income 1,473 1,464

Other operating expenses -167 -273

Operating profit before items affecting comparability 2,397 1,760

Profit from financial itemsProfit from securities and receivables that are fixed assets 74 -2

Other interest income and similar items 67 -40

Interest expenses and similar income items -134 -50

Profit after financial items before items affecting comparability 2,404 1,669

Items affecting comparability – –

Profit before tax 2,404 1,669

Tax on profit for the year -770 -619

Profit after tax 1,634 1,050

Attributable to

Parent company shareholders 708 239

Holdings without a controlling interest 926 811

ProfitAX

Profit before tax 2,404 1,669

Goodwill amortization 1,093 848

Goodwill amortization associated companies 419 276

JAdjustment of IFRS 16 and IAS 19 in Axfood -24 60

Other adjustments -223 -99

Items affecting comparability 0 0

3,669 2,754

AMOUNT IN SEK MILLION 2021 2020 2019 2018 2017

Net sales 94,685 86,864 88,213 82,354 77,174

ProfitAX* 3,669 2,754 3,400 3,021 3,020

in % of net sales 3,9 3,2 3,9 3,7 3,9

Profit after net financial items adjusted for items affecting comparability

2,404 1,669 2,267 2,194 2,464

Profit after net financial items 2,404 1,669 2,267 2,094 2,405

Balance sheet total 37,424 29,782 29,226 29,661 28,180

Capital employed 18,897 15,339 15,596 16,325 16,210

Return on capital employed (%) 15 11 15 14 16

Equity attributable to the ParentCompany's shareholders

10,967 10,266 10,284 10,839 11,445

Equity ratio (%) 35 41 41 44 48

Net debt/equity ratio (multiple) 0,2 0 0 0 0

Cash flow after investments -2,054 2,016 20 983 377

Average number of full-timeemployees

24,001 22,574 22,272 21,506 20,358

*ProfitAX for the listed companies is profit after financial items in accordance with IFRS and for the non-listed companies profit after financial items excluding goodwill amortization, adjustments to additional purchase consideration, items affecting comparability and discontinued operations. ProfitAX is used to enable increased comparison between Group companies and other, listed companies outside the group, and comparison between years.


Amount in SEK million 12-31-2021 12-31-2020

ASSETS

Goodwill 4,407 2,883

Other intangible assets 2,356 1,457

Tangible fixed assets 5,657 4,574

Shares in associated companies 2,202 1,340

Other long-term securities 839 1,007

Deferred tax assets 586 470

Other financial fixed assets 144 153

Total fixed assets 16,191 11,884

Inventories, etc. 8,953 7,829

Accounts receivable 6,642 4,115

Receivables 3,152 2,575

Short-term investments – 353

Cash and bank balances 2,486 3,026

Total current assets 21,233 17,898

TOTAL ASSETS 37,424 29,782

SHAREHOLDER EQUITY AND LIABILITIES

Equity attributable to the Parent Company’s shareholders 10,967 10,266

Holdings without a controlling interest 2,240 1,826

Total shareholder equity 13,207 12,092

Long-term interest-bearing liabilities 3,356 2,658

Deferred tax liabilities 1,287 1,049

Other interest-free long-term liabilities 845 688

Total long-term liabilities 5,488 4,395

Short-term interest-bearing liabilities 2,206 506

Accounts payable 9,430 7,044

Other current interest-free liabilities 7,093 5,745

Other current interest-free liabilities 18,729 13,295

TOTAL SHAREHOLDER EQUITY AND LIABILITIES 37,424 29,782

Amount in SEK million 2021 2020

The ongoing business

Profit after financial items 2,404 1,669

Adjustments for items not included in cash flow, etc. 2,760 2,579

5,164 4,248

Paid tax -659 -486

Cash flow from operating activities before changes in working capital 4,505 3,762

Cash flow from changes in working capital

Change in inventory -551 -184

Change in operating receivables -1,690 631

Change in operating debt 1,982 504

Cash flow from operating activities 4,246 4,713

Investment activities

Acquisition of subsidiaries -2,802 -517

Divestment of subsidiaries 41 39

Change in intangible fixed assets -698 -468

Change in property, plant and equipment -1,933 -1,051

Change in financial assets -909 -700

Cash flow from investment activities -6,301 -2,697

Financing activities

Change in loan debt 2,079 -444

Acquisition of minority interest -151 -87

Dividends paid, other transactions with owners -815 -777

Cash flow from financing activities 1,113 -1,308

Cash flow for the year -942 708

Cash and cash equivalents at year opening 3,379 2,741

Exchange rate difference in cash and cash equivalents 49 -70

Cash and cash equivalents at year end 2,486 3,379

GROUP BALANCE SHEET GROUP CASH FLOW ANALYSIS

O R G A N I Z A T I O N & F I N A N C I A L R E S U L T S O R G A N I Z A T I O N & F I N A N C I A L R E S U L T S


AXEL JOHNSON’S HISTORY IN BRIEF 1873–2020


1873 AXEL JOHNSON FOUNDEDSaddler’s son and merchant bookkeeper Axel Johnson founds A. Johnson & Co, an agency and commission business on Lilla Nygatan in Stockholm.

1883 SAVES AVESTA IRONWORKSAvesta Ironworks in crisis. During reconstruc-tion, A. Johnson & Co becomes part-owner.

1890 SHIPPING COMPANY NORDSTJERNAN FOUNDEDThe steamship Annie Thérèse, named after the founder’s wife, was the shipping company’s first vessel. The foundation of the Johnson Line is laid.

1910 CONSUL GENERAL TAKES OVERAxel Johnson dies and his eldest son Axel Ax:son Johnson, also called the Consul General, assumes the helm.

1928 OIL REFINERY AND ROAD CON-STRUCTION COMPANYAxel Ax:son Johnson builds Scandinavia’sfirst oil refinery in Nynäshamn to supplyvessels with diesel. Asphalt and road con-struction companies are acquired to takeadvantage of new business opportunities.

1958 THIRD GENERATION TAKES OVERConsul General Axel Ax:son Johnson dies, leaving behind over 100 companies. Nordstjernan is endowed and incorporates most of the Johnson group. Axel Ax:son Johnson, also known as the Mining Engi-neer, takes over as CEO of Nordstjernan and the trading company A.Johnson & Co.

1971 ANTONIA BEGINSAxel Ax:son Johnson’s daughter Antonia starts working at the company.

1979 NEW CEOGöran Ennerfelt becomes CEO after theMining Engineer, Axel Ax:son Johnson.

1982 ANTONIA BECOMES BOARD CHAIRNordstjernan is restructured. Businesscollaboration between Nordstjernan andA. Johnson & Co is gradually decreasing.Antonia Ax:son Johnson becomes BoardChair of A. Johnson & Co.

1988 INVESTMENT IN RETAILThe Saba Group is acquired, which in-cludes Åhléns, Dagab, Hemköp, B&W andSaba Trading. A. Johnson & Co changesits name to Axel Johnson.

1990 “THE GOOD COMPANY”Antonia coins the term, with a focus onquality, environment and health.

1993 FOUNDATION FOR SUSTAINABLE DEVELOPMENTThe Antonia Ax:son Johnson Foundationfor Sustainable Development is founded.

1999 GROWTH COMPANY INVESTMENTSNovax is formed and becomes the plat-form for investments in high-growth com-panies such as Filippa K, RCO, AcademicWork and ApoEx.

2000 AXFOOD TAKES SHAPEAxfood is formed through mergers of theHemköp chain, Dagab and D-gruppen.Willys expansion commences and itbecomes a nationwide chain.

2001 AXFAST BECOMES SISTER GROUPReal estate company Axfast is boughtout from Axel Johnson and becomes asuccessful sister group.

2005 FOURTH AND FIFTH GENERATIONThe fifth generation enters the scene andtwo generations work together to buildand develop the Group.

2013 DIVERSITY PROGRAM AXELERATE INITIATEDThe initiative is aimed at creating diversi-ty in managerial positions throughout theAxel Johnson group.

2015 CAROLINE BERG BECOMES BOARD CHAIRCaroline Berg, the fifth generation, takesover the chairmanship of Axel Johnson. Afirst investment in the IT company Dustinis made.

2019 SINVESTMENT IN SOLAR ENERGY AND MARTIN & SERVERA SOLE OWNERIn 2019, two acquisitions were made within Axel Johnson’s new industry area – solar energy – through investments in Swedish Eneo and Norwegian Otovo.

In December, Martin & Servera becomes a wholly owned subsidiary when Axel Johnson acquires the family Oldmark’s 30 percent ownership in the company.

1988

1951

1983

1978

2019

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1873

2015

1936

Axel Johnson

150 years old in

2023 …

AXEL JOHNSON ANNUAL REVIEW 2021 73

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THE AXEL JOHNSON GROUP Axel Johnson is one of four independent groups within The Axel Johnson Group.

The others are the American Axel Johnson Inc., the Swedish property company

Axfast and the asset management company AltoCumulus.

AXEL JOHNSON

Builds and develops businesses in trade and services. The following companies are included in the group:

Axel Johnson International is an industrial group that acquires and develops technol-ogy companies in strategically selected niche markets.

Axfood is a leading player in the grocery industry in Sweden, with the vision to become a leader in good and sustainable food.

AxSol raises investments in the solar energy sector.

Dustin is a leading online-based IT partner with operations in the Nordic and Benelux regions.

KICKS is the Nordic region’s leading beauty chain and offers a comprehensive concept with beauty products in makeup, fragrances, skincare and hair care.

Martin & Servera is Sweden’s leading wholesaler for restaurants and commer-cial kitchens.

Novax is an active and long-term owner partner that invests in small and medium- sized growth companies.

Åhléns is Sweden’s leading department store chain with beauty, interior design and fashion under one roof.

Skincity is an online skincare clinic.

Mitt Liv is a non-profit company that works for an inclusive society and a labor market that values diversity.

AXEL JOHNSON INC.

Builds and develops businesses in wholly and partly owned companies in the ener-gy, industry, environmental and medical sector in North America. The group includes the following companies:

Brazeway is a leading manufacturer of extruded aluminum products in heating, cooling and ventilation in North America.

HighRes Biosolutions is a leader in the design and construction of innovative robotic systems and laboratory equipment for academic research laboratories.

ConforMIS is a medical technology compa-ny focused on orthopedic implants.

Kinetico produces and sells water puri-fication products, both commercial and residential.

Mountain Lumber focuses on the re-use of recycled wood in the production of housing.

Parkson produces and distributes systems and products for municipal and industrial water treatment.

Skjodt-Barrett produces world-leading food and packaging solutions.

Walk2Campus is a real estate company that acquires and manages housing in connection with universities and colleges.

AXFAST Real estate company specializing in properties for commerce and logistics in Sweden as well as office properties in Stockholm.

ALTOCUMULUS AB Consists of family office and works, among other things, with asset manage-ment, with offices in Luxembourg and Stockholm.

NORDSTJERNAN Nordstjernan is a family controlled in-vestment company, which through active ownership in Nordic companies creates long-term, good-value growth. Nordstjer-nan's listed holdings are Attendo, Bonava, Diös, Momentum Group, NCC and Nobia. The unlisted holdings are Dacke Industri, Etac, Insurello, Roaring, Rosti and Sun-paradise. The Axel Johnson Group’s own-ership interest in Nordstjernan amounts to 6 percent.

AXFOUNDATION An independent non-profit organization that works in concrete and practical ways for an environmentally and socially sustainable society.


TAKE-BACK

Andreas Nyholm and Kreshnik Uka work as group manager and production specialist at Dustin’s new department for take-backs, which was established during the year. The department is based in Växjö and employs about ten people.

74 AXEL JOHNSON ANNUAL REVIEW 2021

AXPLORE

In 2021, Axel Johnson’s first group-wide trainee program was launched: Axplore. During the program, trainees may, among other things, work on various projects together with several of the group companies, as well as act as mentors for members of Axel Johnson’s business management.

From left: Olivia Backsell, Vidar Groth, Agnes Ramfelt, Sophie Frieauff, Daniel Eriksson, Sofie Borg and Annabel Aroka.

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AXEL JOHNSON ANNUAL REVIEW 2021

Principal: Axel Johnson. EVP, Communication and Sustainability: David Salsbäck. Communications Manager: Linn Walenty.

Production: Spoon.Project Manager: Julia Rimmerfeldt. Art director: David Linder.

Photos: Samuel Unéus, Karin Röse, Peter Jönsson, Josefin Hagen, Ola Andersson, Dan Boman (Scania), Johan Strindberg, Hamid Ershad Sarabi, Jonas Ljungdahl, Jonas Weissglas and Lisa Öberg

Printer: Trydells tryckeri

Björn Amérus works as team manager for fresh produce at Hemköp Rosendal in Uppsala. The store opened in October 2020.

PROTEIN SWITCH

At the end of 2021, Cashewmeetly was launched on the Swedish market, via a collaboration between Axfood and Cashewmeetly’s founder Linnéa Falkinger. The product consists of 100 percent naturally processed cashew apple and is a plant-based alternative to meat.

Axel JohnsonBox 26008 (Villagatan 6)100 41 StockholmTel: +46 (0)8 701 61 00 www.axeljohnson.se

Always long-term – always impatient

ZOOM IN – ZOOM OUT - Axel Johnson

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