Slide 1: Interim report January - June 2014
Interim report January - June 2014 22 July 2014 CFO Jukka Erlund 1 Q2 2014 Media- ja analyytikkoinfo Matti Halmesmäki
Slide 2: Operating profit excluding non-recurring items at previous year's level
Kesko’s operating profit excluding non- recurring items for January-June at previous year’s level • Kesko’s net sales were €4.5 billion, change -1.8% – Sales increased in the building and home improvement trade and in the car trade • Operating profit excl. non-recurring items was €86.7 million (€88.
Slide 3: Consumers' expectations for own finances
Consumers’ expectations for own finances Own finances in 12 months 16 Expectations for own finances 14 Expectation, 21st century average 12 10 8 6 4 2 0 7/09 1/00 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 1/10 7/10 1/11 7/11 1/12 7/12 1/13 7/13 1/14 So
Slide 4: Profit for 1-6/2014
Profit for 1-6/2014 1-6/2014 1-6/2013 Net sales, €m 4,499 4,580 Fixed costs excl. non-recurring items, €m 874 884 Operating profit excl. non-recurring items, 87 88 €m Non-recurring items, €m -30 8 Net financial items, €m 1 -3 Income tax, €m 15 28 Net profit for the period, €m 42 65 4 Q2 2014 Media a
Slide 5: Financial position
Financial position 1-6/2014 1-6/2013 1-12/2013 Equity ratio, % 52.3 50.5 54.5 Liquid assets, €m 461 474 681 Capital expenditure, €m 99 90 171 Interest-bearing net debt, €m 78 113 -126 Inventories, €m 828 807 797 5 Q2 2014 Media and analyst briefing 22.7.2014
Slide 6: Net sales by division (€m)
Net sales by division (€m) 1-6/2014 Change 4-6/2014 Change Food trade 2,112 -1.5% 1,106 +0.6% Home and speciality 600 -10.0% 288 -10.5% goods trade Building and home 1,317 +1.2% 736 -0.6% improvement trade Car and machinery 556 +0.9% 283 -6.0% trade Group total 4,499 -1.8% 2,371 -2.1% 6 Q2 2014 Medi
Slide 7: Operating profit excl. non-recurring items by quarter
Operating profit excl. non-recurring items by quarter €m 100 83.6 80 69.8 67.6 66.8 60 40 18.6 19.1 20 0 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 7 Q2 2014 Media and analyst briefing 22.7.2014
Slide 8: Operating profit excl. non-recurring items by division (€m)
Operating profit excl. non-recurring items by division (€m) 1-6/2014 Change 4-6/2014 Change Food trade 99.4 0.4 52.9 2.2 Home and speciality -41.0 -13.2 -18.3 -8.2 goods trade Building and home 16.2 13.3 26.6 7.1 improvement trade Car and machinery trade 19.1 -1.7 10.9 -2.1 Group total 86.7 -1.7 67.
Slide 9: Year-on-year change in fixed costs
Year-on-year change in fixed costs excluding non-recurring items 12% 10.3% 10% 7.5% 8.0% 8% 6% 4% 2% 1.2% 0% -2% -1.0% -2.0% -1.3% -4% -4.0% -4.5% -4.0% -6% 9 Q2 2014 Media and analyst briefing 22.7.2014
Slide 10: Return on capital employed
Return on capital employed excl. non-recurring items, moving 12 mo % 30 25.7% 25 20.1% 20 15 9.9% 10 5.5% 5 0 -5 -5.2% -10 Food Home and Building and Car and Group total trade speciality goods home machinery trade trade improvement Capital trade employed: €792 m €412 m €713 m €160 m €2,384 m 10 Q2 2
Slide 11: Steady profit performance in the food trade
Steady profit performance in the food trade Net sales, €m • Kesko Food’s net sales down 1.5% 2400 -1.5% - Decreased purchasing power also 2000 2,144 1600 2,112 reflected on the food trade 1200 +0.6% - Increase in prices has stopped 800 1,099 1,106 - Sales of K-food stores below market 400 performanc
Slide 12: Market situation in the home and speciality goods trade continued to deteriorate
Market situation in the home and speciality goods trade continued to deteriorate • Profitability of the home and speciality Net sales, €m goods chains negatively impacted by sales 800 decline 600 -10.0% • Anttila's profit continued to decline and 667 600 was clearly loss-making 400 -10.5% - Eight An
Slide 13: Sales and profit of the building and home improvement trade on the increase
Sales and profit of the building and home improvement trade on the increase Net sales, €m 1500 +1.2% • In terms of local currencies, sales were 1,302 1,317 up in all countries, at 5.8% in total 1000 -0.6% • Market position of K-rauta and Rautia in 500 740 736 Finland continued to strengthen 0 • Oper
Slide 14: Volkswagen continued as market leader
Volkswagen continued as market leader Car and machinery trade: Net sales, €m 800 • Market share of Audi, Volkswagen and 600 +0.9% Seat 21.0% (21.1%) 551 556 • VV-Auto’s net sales performance +3.4% 400 -6.0% 200 301 283 - Market performance of new registrations of passenger cars and 0 4-6/13 4-6/14 1
Slide 15: Capital expenditure
Capital expenditure €m 60 56 50 48 47 41 43 40 35 30 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 15 Q2 2014 Media and analyst briefing 22.7.2014
Slide 16: Future outlook
Future outlook Estimates of the future outlook for Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (7/2014-6/2015) in comparison with the 12 months preceding the reporting period (7/2013-6/2014). Future prospects f
Slide 17: Thank you!
I : > Xe < S ~~ KESKO