REITAN GROUP ANNUAL REPORT 2017

KEY FIGURES

Amounts in NOK mill.

SALES / RETAIL LOCATIONS 2017 2016

Total sales incl. Franchisee turnover ¹) 89108 89212
Growth in turnover Rema 1000 ¹) - 2.3% 5.8%
Growth in turnover Reitan Convenience ¹) 0.1% 0.0%
Number of outlets 31.12. 3829 3821
The number of employees in retail outlets 31.12. 33044 32028

RESULT 2017 2016

revenues 65229 66169
Earnings before Amort., Depreciation and write-downs. (EBITDA) 4672 5151
Operating profit 3428 3987
Profit before tax 3399 7301
Net income 2786 6416

PROFITABILITY 2017 2016

Operating margin 3.8% 4.5%
Cash Margin 5.2% 5.8%
Return on assets 8.4% 18.7%
Return on equity 11.7% 30.3%
Return on capital employed 11.9% 15.0%

BALANCE 31/12/17 31/12/16

Fixed assets 28410 25061
Current assets 16724 14730
Equity 25302 22421
Long term debt 5709 4082
Current liabilities 14123 13288
Total assets 45134 39791
Equity ratio 56.1% 56.3%

LIQUIDITY 2017 2016

Net investments in fixed assets 2104 1312
Holdings of cash and cash equivalents at 31.12. 1967 2070
Long-term loans 31.12. 3751 2180
Short-term loans 31.12. 2610 2011
Net interest bearing debt at 31.12. 3605 1563

For definitions of key figures, see page 74.

1) Reitan Group turnover consists of store sales through franchisees and external sales. Reaction through franchisees not
included at Reitangruppen revenue, and thus is not revised figures. The company's management believes turnover is
important and crucial to understanding the business's financial development.

2 Reitan Group Annual Report 2017

 CONTENTS

CONSOLIDATED COMPANY ACCOUNTS

INTRODUCTION REITAN GROUP AS REITAN GROUP AS

Key figures 2 Annual Report 8 Income statement 62

Colonial Major 4 Total Result 15 Balance 63

Balance sheet - Assets 16 Equity 64

Balance - Egenk. and liabilities 17 Cash Flow Statement 64 Notes -

VARIOUS
Equity 18 Contents 65

Auditor's report 71 Cash Flow Statement 19 Notes - Notes 66

Definitions of key figures 74 Contents 21

addresses 75 Notes 22

Reitan Group Annual Report 2017 3

 COLONIAL MAJOREN

I wish that all the Reitan group will Reitan Group consists of nearly 4,000 energy stations, kiosks and shops
have a good time, there- for I am both family businesses in seven countries and built new buildings, and I knew
proud and pleased when I sign that our which provide employment to 37,000 about each project. The only thing I
Grocers doing well and is happy in his people. 42 per cent of turnover is now knew was that all decisions are
job. It is for- wards to succeed if we do taking place abroad and almost 60 per taken in line with our culture and
not love what we are doing. cent of the labor force works outside structure, our visions, values,
Franchising is a vinnerkon- Sept. within Norway. business ideas and financial stan-
the organization, and we notice now. dards.
Reitan group is practically debt-free
within the trade and we are well within 2017 joins the ranks of very good
the guideline when it comes to real years. The sale of shares in Axfood
estate. Low cost and service trade is contributed to an extraordinary good I am proud of all
the winning concepts in the future, result in the enthusiastic people
even though e-commerce is steadily in Reitangruppen.
progressing in non-food industries. 2016, while the 2017 many have
goes into his- rieboka as

the year where our

winning culture was fur-

ther amplifying

consumption. Also in

We do not do everything right, but we 2017 opened Reitan

do more right than wrong and we build group

great values. We have invested nearly

everything now has earned the new
value, which has made us one of the
largest enterprises.

4 Reitan Group Annual Report 2017

been with us a long time, has ab- solute
confidence and take big decisions every
day. Value based management is not
just a fashion word in Reitangruppen -
it's a fact. Real decentralized
management allows the company is
progressing rapidly. Throughout the
Reitan group was there in 2017 that
regular vigorous activity and cool-
turbygging through training of our
philosophy and value-based
management. Wherever you work in
Reitangruppen we all have the same
philosophy and the same values ​base
layers. We work for all our employees to
have the values ​of the spinal cord, so
that they are able to make good
decisions without having to convene
meetings every time
a decision should be taken. We are We develop our business, we maintain high
convinced that adherence to our
ethical standards, we will be debt free We
philosophy, combined with the high
will motivate winning culture we are thinking
competence of our concepts, is what it
positively and aggressively We talk to each
takes for us to continue to have fun
other
and profitable. Our overhead vision is
to become known as the most
- not about each customer is
value-driven company. In Reitan group, our top commander We'll have
we are proud of what we are doing, fun and profitable
have eternities Tens perspective and
hunt all the time to become even
better.
Organization chart per March 2018
Reitan Group Annual Report 2017 5
6 Reitan Group Annual Report 2017
CONSOLIDATED REITAN
GROUP AS

Reitan Group Annual Report 2017 7


REITAN GROUP
It is our strong values ​and corporate values
​that drive us - therefore we work hard and
continuously to achieve Reitan Group VI
board to be known as the most value-driven
company. We do this partly through cultivating
our business, and by maintaining and
reinforcing a culture where our customers are
always the top boss.
In Reitangruppen should get human humans
make many decisions. Reit- angruppen should
be the symbol of common sense,
approachability, usnob- bethet and skill. In
Reitangruppen it's not embarrassing to make
things easy - it's brilliant.
We focus on gjennomfø- ring ability. What
is decided to be performed. We put things
into practice and does not create
unnecessary work for each other. We
behand- laughs employees, suppliers,
partners and customers in a proper way, do
the right thing, amuses us and working hard.
Reitan Group's core values ​represent the
values ​our culture is built. The values ​is the
result of the company's long-standing
history. A strong corporate culture based on
the eight verdigrunnla- gene is essential for
the achievement of the Reitan Group's
overall objectives. Value-based management
is a part of our philosophy.
8 Reitan Group Annual Report 2017
DIRECTORS
• We streamlined the company's
business
• We hold a high business ethic
• We will be debt free
• We should motivate winning culture
• We are thinking positively and aggressively
• We talk to each other
- not interchangeable
• The customer is our top boss
• We will have fun and profitable
Reitan Group's business concept is to own
strong and independent business within the
male part and property. The parent company
Reitan Gruppen AS's mission is to build a
strong culture, ensuring that we have effective
structures and set financial standards we
should honeycombed by.
Five business in seven countries
Reitan Group consists of five main
business units: REMA
1000, Reitan Convenience, Uno-X Energi,
Reitan Eiendom and Reitan capital.
Reitangruppen pens headquarters are in
Ladegaard in Trondheim. Ladegaard is Reitan
Group cultural and fi nancial center.
Handelsvirksom- is operated from Oslo,
Stockholm (Sweden), Copenhagen and
Horsens (Denmark), Helsinki (Finland), Riga
(Latvia), Tallinn (Estonia) and Vilnius
(Lithuania), while the real estate activities has
its operational center in Trondheim. As of 31
December 2017 had Reitangruppen 3,829
outlets (3821).
franchise Operations
Reitangruppen was the first day
ligvareselskapet in Norway began using
franchising in their organization, and cultivated
this mode of operation through the operation of
the concept Rema 1000.
Franchising is a close cooperation
between two independent companies: the
franchisor and franchisee. Conducting
franchising is a balancing act between
freedom
and system operation. The franchisee is an
independent næringsdriven- ones, but must
comply with the concept and the philosophy
adopted by franchise dealer.
The franchisor develops in standards such
as the establishment and operation of
businesses with specific goods and / or
services under a common brand name.
Franchise runs its local operations on this
basis, assisted by franchise giver. It demands
for accountability on both sides, and a
franchisee who manages a brand has a
special responsibility.
The franchisor distributes goods and
services to the franchisee. The division of
roles is in principle so that the franchisor
perform services on the areas where the total
is the cheapest and most convenient to carry
out the work key. Franchi- systems enables
set high mutual claims of the parties, which
con- sistent raises organization's competence.
REPORT ON THE CONSOLIDATED
FINANCIAL STATEMENTS
The consolidated financial statements have been
prepared in accordance with International Funding Gal
Reporting Standards (IFRS) approved by the EU.
The financial statements, provides the fair
presentation of the company's position. Going
concern assumption is present and the basis
for the financial statements.
The group's profit and finansiel- laugh
position is affected by uncertainty, particularly
relating to estimates made in estimating the
fair value of investment property, as well as
the assessment of impairment of intangible
assets and fixed assets.
Income statement
Total sales including franchi- setakeromsetning
in 2017 was NOK 89 108 million. (NOK 89 212
million.). Operating revenues totaled NOK 65
229 million. (NOK 66 169 million.). Operating
profit before amortization, depreciation and
amortization (EBITDA)
was NOK 4,672 mill. (NOK 5,151 mill.) and
the operating profit was NOK 3,428 mill.
(NOK 3,987 mill.).
Net interest expense was NOK 167 mill.
(NOK 183 mill.). The reduction in net
interest expense was mainly due to lower
level of interest-bearing debt during 2017
compared with 2016.
Other financial items amounted to NOK 7
million. (NOK 3,493 mill.). Last year includes
dividends received and gains on the sale of the
financial investment Axfood with NOK 3,389
million. And are discussed under Financial
investments. In addition, a largely unrealized net
currency finansieringsaktivi- viscosities included
with sufficient 62 million. (Currency gain NOK 93
million.), While the increase in value of interest
rate swaps are probably 35 million. (NOK 57
million.).
Profit before tax was NOK 3,399 mill.
(NOK 7,301 million). The result was NOK
2,786 mill. (NOK 6,416 mill.).
Other comprehensive income after tax was
NOK 424 mill. (NOK 3,968 mill.). Effects related
to the change in value of financial investments
including hash totals with NOK -13 million.
(Value changes and effects relating to retirement
Axfood NOK 3,621 mill.). Positive foreign
currency translation amounts to NOK 442 million.
(Negative foreign currency translation NOK 324
mill.). The overall result was NOK 3,210 mill.
(NOK 2,448 mill.).
Cash and investments
Gross cash flow from operating activities
(before interest and taxes) was NOK 3,400
mill. (NOK 4,353 mill.). Change in working
capital including pension obligations resulted
in a negative cash flow of NOK 483 million.
(Negative cash flow NOK 340 mill.). Cash
flow from operating activities differs from
EBITDA mainly by that excludes dividends on
investment securities, net gain (loss), income
from associates and joint ventures and
change in value of investment property.
Change in working capital including pension
liabilities are included in cash flow from
operations, but not in EBITDA.
Cash flow from investment activities was
NOK 4,384 mill. (NOK 160 mill.). The
company invested NOK 2,174 mill. (NOK
1436 mill.) In fixed assets and NOK 1,938
mill. (NOK 2,205 million). In investment
property. Net acquisition of associated
companies, primarily in the real estate
business, was NOK 133 million. (Net sales
NOK 343 mill.). Dividends from financial
investments and associates were in 2017
NOK 212 mill. (NOK 354 mill.).
The group's ability to egenfinan-
financing of investments in operations
related assets is considered very good.
Funding and liquidity
Total assets at 31 December 2017 was
NOK 45 134 million. (NOK 39 791 mill.).
Liquid assets at 31 December 2017 was
NOK 1,967 mill. (NOK 2,070 mill.). Unused
lånefasili- viscosities was NOK 7,124 mill.
(NOK 8,194 mill.).
Book equity at utgan- gene of 2017 was
NOK 25 302 million. (NOK 22 421 million.)
And corresponds to an equity ratio of 56.1
per cent (56.3 per cent).
SUMMARY OF BUSINESS AREAS
The Board emphasizes that it normally is
considerable uncertainty as to future
developments.
Rema 1000
REMA 1000 is leading in Scandinavia within
the organization and operation of the
franchise business in the grocery store. The
vision is that Rema 1000 will be the largest
grocery chain in Scandi- DINAVIA.
REMA 1000 handelsvirksom- named in
Norway and Denmark consists of franchise
operations and distribution, as well as
production and development of own brands. In
addition, the business area real estate
business that will contribute to boosting the
creation and development of REMA 1000
shops in Norway and Denmark. Number of
outlets per
31 December 2017 was 921 (868). Total sales
including franchi- setakeromsetning in 2017 was
NOK 66 414 million. (NOK 67,810 million). To-
corresponding to a growth of -2.3 per cent (5.8
per cent) compared with the previous year in
local currency terms. growth
Reitan Group Annual Report 2017
in total revenue is affected by REMA
Distribution terminated distribution
partnership with Bunnpris 31 December
2016. Revenues from store including
franchisee turnover in 2017 was NOK 57
515 million. (NOK 56 729 million). This
represents a growth of 1.2 per cent (5, 0
percent).
EBITDA was NOK 2,355 mill. (NOK 2,865
million.) And operating profit was NOK 1,706 mill.
(NOK 2,298 mill.). A weaker year for operations in
Norway gives slightly lower operating margin and
leading to an operating profit which is NOK 592
million. Worse than last year.
Rema 1000 in Norway had in 2017 a
turnover growth (retail sales) of -3.0 percent
and a comparable growth rate of -5.5
percent. In Norway, REMA 1000 a market
share of 23.4 per cent for 2017 (24.4 percent
in 2016, market share is according to official
measurements from Nielsen Norway). REMA
Distribution showed a decline in trade
revenue as a result of develop- ments in
Rema 1000 and the loss of distribution to
Bunnpris.
Rema 1000 in Denmark also had in 2017
high revenue growth and good profitability.
Growth in sales (store sales) were
12.3 percent. Comparable growth was 6.5
percent. Rema 1000 in Denmark has an
estimated market share of 13.1 per cent for
2017 (estimated at 11.9 percent in 2016).
Reitan Distribution performed well in trade
turnover. Rema 1000 wants strong market
positions in the countries where the company
operates. It is expected to continue strong
competition between the leading market
participants do in the grocery trade in the
coming years. Utilization of acquired
experience and level of expertise within
franchising, marketing and branding will help
to reinforce REMA 1000 concept. Efforts to
improve efficiency both in the warehouse and
the stores will be continued. Focus is to
create a simpler everyday lives primarily for
Merchants and shops, but also for the rest of
the organization.
Rema 1000 in Norway will continue to
further develop the concept
9
by having the lowest prices on high quality
products, which are produced and sold on a
Manager in charge manner. This also means
the further development and reinforcement of
own brands in collaboration with private and
exclusive suppliers. Increased digitization
forward, supported by efficient IT systems and
more agile processes throughout the supply
chain, will help to simplify the grocer, improve
the shopping experience for the customer, as
well as providing a more efficient operation of
the organization.
Rema 1000 in Denmark will continue to
reinforce the concept and work on "Discount
with attitude", which means that the goods
are sold at a low price, but with clear attitudes
and demands for goods quality and impact on
people and the environment. This includes
continued development of ecology, bæ-
sustainable products and reducing food
waste.
Property development will continues
putting efforts to develop REMA 1000 shops
in Norway and in Denmark.
Reitan Convenience
Reitan Convenience is a leader in the
operation of the franchise business in the
servicehandels- market in Scandinavia,
Finland and the Baltics.
Reitan Convenience tive efforts Narvesen
in Norway, Latvia and Lithuania, Pressbyrån
in Sweden, 7-Eleven in Norway, Sweden and
Denmark, R-kioski in Finland, R kiosk in
Estonia, Lietuvos Spauda in Lithuania and
Northland in Norway. Reitan Convenience is
the market leader in all countries it is
represented in. In addition to service trade
includes business area distribution of reading
materials through Preses Serviss in Latvia,
Lehepunkt in Estonia and Press Express in
Lithuania. Reitan Convenience also includes
Scan dinavian Fuel Infrastructure (SFI), which
owns the gas infrastructure 7-Eleven Along
the way in Norway and Denmark. Number of
outlets at 31 December 2017 was 2,275
(2,322).
Total revenues including from N-
chisetakeromsetning in 2017 was NOK 15
900 million. (NOK 15 907
10 Reitan Group Annual Report 2017
mill.). This represents an increase of
0.1 percent (0.0 percent) compared with last
year in local currency. EBITDA was NOK 927
mill. (NOK 984 mill.). Operating profit was NOK
569 mill. (NOK 578 mill.).
There is a general trend in the service
trade market turnover revolves from tra-
ditional groups as reading material,
transport tickets, gaming and tobacco, the
product groups food on the go, as well as
hot and cold drinks.
Reitan Convenience in Norway had in 2017
an increase in butikkom- sentence of 1.0
percent (-0.2 percent) and a comparable growth
of -1.0 percent in Narvesen, -1.0 percent in the
7-Eleven City and 0.2 percentage in 7-Eleven
Along the way. Bread- and bagettkonseptet
Northland opened in 2017 a total of five stores
at Gardermoen and Flesland.
Reitan Convenience in Sweden in 2017
growth in butik- komsetning of 0.0 percent
(2.3 percent) and a comparable increase of
0.4 percent Pressbyrån,
0.4 percent in the 7-Eleven City and -1.1 percent in
the 7-Eleven along the way.
Reitan Convenience in Denmark had in 2017
a growth in butikkom- sentence at -2.7 per cent
(0.9 per cent) and a comparable growth of -0.5
percent in the 7-Eleven City, -3.8 percent in 7
-The pupils along the way and
- 0.3 percent DSB / 7-eleven. R kioski in
Finland had in 2017 had a retail turnover of
3.9 percent (-4.3 percent) and a comparable
increase of 9.5 percent.
Narvesen Latvia had in 2017 had a retail
turnover of 0.2 percent (0.3 percent) and a
comparable growth of -1.5 per cent.
R kiosk in Estonia had in 2017 had a retail
turnover of 4.6 percent (4.7 percent) and a
comparable increase of 5.2 percent.
Reitan Convenience in Lithuania in 2017
growth in butik- komsetning of 0.9 percent
(6.0 percent) and a comparable increase of
2.5 percent. Reitan Convenience shall re-
nom successful merchants, be Europe's
biggest, best and most profitable
servicehandels- company and specializes in
the development, organization and operation
of the service trade concepts. This must be
viewed as a long-term goal
at any given time will be divested gig of the
opportunities opening up and the company's
ability to generate the necessary cash flows
that enable such initiatives. Growth in the
markets Reitan Convenience already
represented in, shall primarily be re- nom to
develop existing concepts and product
ranges.
Uno-X Energi
Uno-X Energi is an energy company engaged
in purchasing, inventory, sales and marketing
of fuels and lubricants to individuals and
businesses. Uno-X Energi's operating
companies YX Norway, Uno-X Norway, Uno-X
Lubricating oil and Uno-X Supply in Norway
and YX Denmark, Uno-X Denmark and Uno-X
Smøreolie in Denmark. Uno-X Energi's vision is
to be the most effective and value-driven fuel
and Lubricating reoljeselskapet in Scandinavia.
Uno-X Energi changed names from Uno-X
Group in July 2017.
YX Norway's fuel supplier to a chain
catering energistasjo- ner and aims to be the
best and most effective cooperation
beidsleverandøren for stations owned and
operated by Negotiate clean themselves
(freeholders). From distributors will tailored
for the transport industry, called YX Truck,
the company offers diesel with 20 percent
advanced and sustainable biofuels, without
palm oil products. YX Denmark serves
primarily Danish corporate clients, but also
supply fuel oil to private homes. The
company operates division Erhverv which
manages a nationwide truck-chain tailored
transportbran- sea, as well as divisions
Agriculture and Fuel Oil.
Uno-X Norway and Uno-X Den- mark
selling fuel from a nationwide network of
self-contained energy stations. The customer
can refuel easily, efficiently and cheaply in
easily accessible locations, and companies
are leaders in their respective markets. High-
quality Texaco lubricant products are
marketed and sold by Uno-X Lubricating oil in
Norway and Denmark. Number of outlets 31
de- december 2017 was 633 (631). Total
revenues in 2017 were NOK