Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Day (December 2022)
10 slides from Kesko Oyj Class A's investor day presentation, December 2022
Slide 1: Ongoing Transformation in Car Trade
ONGOING TRANSFORMATION IN CAR TRADE Matti Virtanen President, Car trade Kesko Capital Markets Day 2022
Slide 2: A Good Strategy
A GOOD STRATEGY KESKO GROWTH STRATEGY CAR TRADE STRATEGY FO CUS O N FINLAND ONE UNIFIED NEW CARS CUSTOMER EXPERIENCE USED CARS DIGITALISATION SERVIC E S SUSTAINABILITY CAR TRADE
Slide 3: Leading Car Trade Player in Finland
LEADING CAR TRADE PLAYER IN FINLAND • Kesko operates a major part of VW Group’s businesses • Net sales €898 million • Market leader in new car sales 17.0% (2021) • Operating profit €44.7 million • Fast growing used car business • Operating margin 5.0% • Nationwide service and charging networks • All
Slide 4: Car Trade Undergoing Significant Transformation
CAR TRADE UNDERGOING SIGNIFICANT TRANSFORMATION NEW DISTRIBUTION MODEL Significant reduction in total delivered cost FUEL REVOLUTION Electrification continues, customers are not clear on choices SUPPLY CHAIN CHALLENGES Continued disruptions in supply chain DIGITALISATION Focus on efficiency, major c
Slide 5: Transformation in Kesko's Car Trade
TRANSFORMATION IN KESKO’S CAR TRADE • Measures based on comprehensive review of cost structure • Establishing new management model with clear responsibilities for results • Reshaping pricing and discount practices • Stronger use of digitalisation • Growing used car business • Adopting one shared K-A
Slide 6: Good Profitability Despite Weak Market
GOOD PROFITABILITY DESPITE WEAK MARKET Big profit improvement potential once market and supply will normalise • New car registrations -19%* • Orders, new cars -6% compared to 2021 • Used car sales -11%* • Public charging points +33%* * 1-10/2022
Slide 7: Availability Affecting Sales and Results
AVAILABILITY AFFECTING SALES AND RESULTS Good profitability improvement despite challenges 1050 1,100 1,028 60 50 52 45 909 893 893 898 900 40 864 849 35 33 30 26 30 27 748 750 23 20 10 600 0 2015 2016 2017 2018 2019 2020 2021 Q3/2022, rolling 12 months Operating margin 3.5% 3.5% 3.6% 3.9% 3.1% 2.6%
Slide 8: Transformation Offers New Business Opportunities
TRANSFORMATION OFFERS NEW BUSINESS OPPORTUNITIES SHARE OF FUEL TYPES IN NEW PASSENGER CARS REGISTRATIONS IN FINLAND 100 % • Electrification of the new car market is 90 % growing 80 % 70 % 60 % • The share of combustion engines and 50 % hybrids will remain remarkable 40 % 30 % • K-Auto operates in al
Slide 9: Main Target Is to Be Number One by All Key Metrics
MAIN TARGET IS TO BE NUMBER ONE BY ALL KEY METRICS STREAMLINED BUSINESS GROWING USED CARS BUSINESS DIGITALISATION NEW BUSINESSES BALANCED PORTFOLIO 9
Slide 10: Thank You!
THANK YOU! Al