Analyst meeting. SVP, CFO Jukka Erlund 12 June 2014

Transcription

1 Analyst meeting SVP, CFO 12 June 2014

2 Kesko Q2/13-Q1/14 Net sales 9.3 billion Operating profit 239 million 2,000 stores in eight countries Book value of real estate 1.4 billion, lease liabilities 2.4 billion Equity ratio 53.2%, interest bearing net debt 25 million Employees 23,425 Shareholders 40,570 (5/2014) Net sales 9,285m Operating profit excl. non-recurring items 239m Food trade Home and speciality goods trade Building and home improvement trade Car and machinery trade 0 2

3 Consumers expectations for own finances Own finances after the next 12 months Expectations for own finances Expectation, 21st century average /00 7/00 1/01 7/01 1/02 7/02 1/03 7/03 1/04 7/04 1/05 7/05 1/06 7/06 1/07 7/07 1/08 7/08 1/09 7/09 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 Source: Statistics Finland 3

4 Unemployment rate Source: Statistics Finland 4

5 Change in retail trade, non-food (yoy) Finland Sweden Norway Estonia Latvia Lithuania -5 Source: Eurostat 5

6 Financial situation in Russia GDP growth has slowed, Q1/ % Retail trade one of the central growth areas Real growth in Q1/ % Growth in real wages % Inflation rose to 7.6% in May/2014 High food price inflation Weakened rouble has a negative effect on purchasing power RUB exchange rate strengthened from the lowest early spring levels, (46.5 as at 11 June 2014 Low unemployment rate, 5.5% Q1/ Retail trade GDP Source: Rosstat 6

7 Strategic focus areas Strengthening sales growth and improving profitability E-commerce and multi-channel services Exploiting business opportunities in Russia Strong financial position and good dividend payment capacity 7

8 Q1/2014 key figures Q1/2014 Q1/2013 Net sales, million 2,129 2,159 Net sales performance, % Fixed costs*, million Operating profit*, million Profit before tax, million Liquid assets, million Return on capital employed*, %, 12 mo Equity ratio, % Capital expenditure, million * excluding non-recurring items 8

9 Operating margin,%, by division excluding non-recurring items 1-3/ / / / / / / / / 2014 Food trade Home and speciality goods trade Building and home improvement trade Car and machinery trade Total

10 Year-on-year change in fixed costs excluding non-recurring items 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% 10.3% 7.5% 8.0% 1.2% -4.0% -4.5% -4.0% -2.0% -1.3% 10

11 Return on capital employed moving 12 mo, excluding non-recurring items % % 21.5% % 5 4.4% 0-5 Capital employed: Food trade -3.1% Home and speciality goods trade Building and home improvement trade Car and machinery trade Kesko Group 809 million 431 million 722 million 160 million 2,416 million 11

12 Kesko Group s sales 1 5/2014 May million Change, % million Change, % Food trade, total , Home and speciality goods trade, total Building and home improvement trade, Finland Building and home improvement trade, other countries Building and home improvement trade, total , Car and machinery trade, total Common operations and eliminations Grand total , Finland, total , Other countries, total Grand total ,

13 3 mo rolling sales performance 12% 10% 8% 6% 4% 2% 0% -2% -4% -6% Food trade 9% 6% 3% 0% -3% -6% -9% -12% -15% Home and speciality goods trade 16% 12% 8% 4% 0% -4% -8% -12% Building and home improvement trade 40% 30% 20% 10% 0% -10% -20% -30% Car and machinery trade 13

14 Food trade Net sales, M Q1/ 2014 Change, % Sales to K-food stores Kespro K-ruoka Russia 25.. Total Total 916 stores Q2/2013-Q1/2014 Net sales 4,348 million, +0.0% Operating profit* million (4.6%), million Return on capital employed* 24.9% Operating profit *, M Q1/ 2014 Q1/ 2013 Total Operating margin *excl. non-recurring items 14

15 Food trade For January-May, sales performance of Kesko s food trade -1.6% - Two delivery days less than in the previous year - Weak economic situation and decline in consumers purchasing power have affected purchasing behaviour Food price inflation rate has slowed to less than 1% Increase in the share of own brands has continued In Finland Revision of fresh food departments Expansion of own K-Menu brand Online food trade has been expanded in the Greater Helsinki area Sales performance of food trade in Russia better than planned 15

16 Home and speciality goods trade Net sales, M Q1/ 2014 Change, % K-citymarket, home and speciality goods Anttila Intersport, Finland Intersport, Russia Indoor Total 371 stores Q2/2013-Q1/2014 Net sales 1,424 million, -9.8% Operating profit* million (-0.9%), million Return on capital employed* -3.1% Musta Pörssi Kenkäkesko Total Operating profit *, M Q1/ 2014 Q1/ 2013 Total Operating margin *excl. non-recurring items

17 Home and speciality goods trade For January-May, sales performance of Kesko s home and speciality goods trade -10.4% - Market situation and consumer demand weakened - Most significant sales decline in the department store trade Development of e-commerce clearly better All chains to have an online store by the end of the year Revision of Anttila s concepts, network and cost adjustment and expansion of NetAnttila s selections 17

18 Building and home improvement trade Net sales, M Q1/ 2014 Rautakesko, Finland Change, % K-rauta, Sweden Byggmakker, Norway K-rauta, Estonia K-rauta, Latvia Total 339 stores Q2/2013-Q1/2014 Net sales 2,627 million, -4.8% Operating profit* 31.9 million (1.2%), million Return on capital employed* 4.4% *excl. non-recurring items 18 Senukai, Lithuania K-rauta, Russia OMA, Belarus Total Operating profit *, M Q1/ 2014 Q1/ 2013 Total Operating margin

19 Building permits granted and building starts, m3 million, moving annual amount * Preliminary data Source: Statistics Finland 19

20 Building and home improvement trade For January-May, sales performance of Kesko s building and home improvement trade +1.2% - Change in local currencies +6.0% - Positive performance in all operating countries Exchange rate movements affected sales in Norway and Russia in particular - NOK impact -10% - RUB impact -18% Sales performance strengthened especially in the Baltic countries and in Moscow, Russia Increasing e-commerce and e-services and strengthening B2B sales 20

21 Car and machinery trade Net sales, M Q1/ 2014 Change, % VV-Auto Konekesko Total Q2/2013-Q1/2014 Net sales 1,060 million, 4.9% Operating profit* 34.4 million (3.2%), 0.2 million Return on capital employed* 21.5% Source: TraFi Operating profit *, M Q1/ 2014 Q1/ 2013 Total Operating margin *excl. non-recurring items 21

22 Car and machinery trade Market share (passenger cars), new registrations 1-5/2014 For January-May, market trend of new registrations of passanger cars +4.6% For January-May, sales performance of Kesko s car and machinery trade +2.7% - VV-Auto +4.4% - Konekesko -2.0% For January-May, combined market share of Audi, Volkswagen and Seat passenger cars and vans 20.8% (20.8%) 20.3% Volkswagen 12.0% Toyota 11.9% Skoda 9.6% Volvo 7.4% Audi 6.7% Ford 6.,7% Nissan 6.3% Kia 5.5% BMW 5.1% Seat 1.6% Others 27.2% 22

23 New registrations of passenger cars in Finland Source: Statistics Finland 23

24 Contact details Twitter.com/Kesko_IR 24