Kesko Oyj Class A · OMXHEX:KESKOA

Kesko Oyj Class A — Q3 2015 Earnings Presentation

27 slides from Kesko Oyj Class A's earnings presentation, Oct 22, 2015

  1. Slide 1: Interim Report January-September 2015

    INTERIM REPORT JANUARY-SEPTEMBER 2015 PRESIDENT AND CEO MIKKO HELANDER 22 OCTOBER 2015 1

  2. Slide 2: Key events in Q3

    KEY EVENTS IN Q3 • Measures taken to strengthen the competitiveness of the grocery trade have progressed as planned and the division’s profitability remained at a good level • Market share and profitability of the building and home improvement trade continued to strengthen • New cars have continued

  3. Slide 3: Q3 net sales growth +1.2%

    Q3 NET SALES GROWTH +1.2% IN LOCAL CURRENCIES EXCL. ANTTILA €m 7,000 6,804 6,513 6,000 5,000 4,000 3,000 2,304 2,203 2,000 1,000 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 Reported net sales, €, incl. Anttila 3

  4. Slide 4: Q3 net sales by division

    Q3 NET SALES BY DIVISION Car trade -2.6% €170m 8% €1,171m Grocery trade Home €857m 53% -0.6% improvement 39% and speciality goods trade +4.5% Comparable change 4

  5. Slide 5: Operating profit excl. non-recurring items

    OPERATING PROFIT EXCL. NON-RECURRING ITEMS €m 200 185.3 170.8 150 100 84.0 82.5 50 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 5

  6. Slide 6: Steady profit performance continues

    STEADY PROFIT PERFORMANCE CONTINUES OPERATING PROFIT EXCL. NON-RECURRING ITEMS €m 100 83.6 84.0 82.5 80 76.4 69.8 66.8 67.6 61.9 60 40 26.5 18.6 19.1 20 0 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 6

  7. Slide 7: Return on capital employed increases

    RETURN ON CAPITAL EMPLOYED INCREASES EXCL. NON-RECURRING ITEMS, ROLLING 12 MO % 12 11.3 10.9 9.9 9.9 10.0 9.9 10.2 9.7 9.8 10 9.3 8.8 8 6 4 2 0 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 7

  8. Slide 8: Cash flow after capital expenditure

    CASH FLOW AFTER CAPITAL EXPENDITURE €m 600 541.1 206.1 200 82.4 98.6 100 80.3 75.8 79.9 39.3 0 -100 -100.5 -138.5 -139.3 -200 Q1/2013 Q2/2013 Q3/2013 Q4/2013 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 8

  9. Slide 9: Financial position

    FINANCIAL POSITION 30.9.2015 30.9.2014 Equity ratio, % 54.2 54.2 Liquid assets, €m 858 503 Interest-bearing net liabilities, €m -394 -3 Capital expenditure, €m 152 151 Return on capital employed*, % 11.3 10.0 Return on equity*, % 8.0 8.4 * Excl. non-recurring items, rolling 12 mo 9

  10. Slide 10: Grocery trade

    GROCERY TRADE 10

  11. Slide 11: Net sales

    NET SALES €m 3,494 3,424 3,500 3,000 2,500 2,000 1,500 1,190 1,171 1,000 500 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 11

  12. Slide 12: Operating profit excl. non-recurring items

    OPERATING PROFIT EXCL. NON-RECURRING ITEMS €m 180 161.0 160 140 123.0 120 100 80 60.3 60 44.8 40 20 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 12

  13. Slide 13: Grocery trade in Q3

    GROCERY TRADE IN Q3 • Measures taken to strengthen the competitiveness of the grocery trade have progressed as planned and the division’s profitability remained at a good level. • Price level in Finnish grocery trade has fallen by around 1% • The K-Group responds to changes in the competitive enviro

  14. Slide 14: Home improvement and speciality goods trade

    HOME IMPROVEMENT AND SPECIALITY GOODS TRADE 14

  15. Slide 15: Q3 net sales growth +4.5%

    Q3 NET SALES GROWTH +4.5% IN LOCAL CURRENCIES EXCL. ANTTILA €m 3,000 2,731 2,514 2,500 2,000 1,500 942 857 1,000 500 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 Reported net sales, €, incl. Anttila 15

  16. Slide 16: Operating profit excl. non-recurring items continued to increase in Q3

    OPERATING PROFIT EXCL. NON-RECURRING ITEMS CONTINUED TO INCREASE IN Q3 €m 60 56.1 40 35.8 20.6 20 0 -3.3 -20 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 16

  17. Slide 17: Home improvement and speciality goods trade in Q3

    HOME IMPROVEMENT AND SPECIALITY GOODS TRADE IN Q3 • Building and home improvement trade • Market share is estimated to have grown in Finland, Norway, the Baltics and Russia • Operating profit has improved in ten successive quarters • Net sales and profitability strengthened in the agricultural and m

  18. Slide 18: Car trade

    CAR TRADE 18

  19. Slide 19: Net sales

    NET SALES €m 592 600 571 400 200 175 170 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 19

  20. Slide 20: Operating profit excl. non-recurring items

    OPERATING PROFIT EXCL. NON-RECURRING ITEMS €m 30 23.8 22.3 20 10 6.3 6.0 0 Q3/2014 Q3/2015 Q1-Q3/2014 Q1-Q3/2015 20

  21. Slide 21: Car trade in Q3

    CAR TRADE IN Q3 • Profitability remained at a good level despite challenging market situation • Volkswagen Group’s diesel emissions issue • Vehicles fitted with EU6 diesel engines and vehicles fitted with petrol engines are not affected • In Finland, around 50,000 cars imported by VV-Auto Group are

  22. Slide 22: Order backlog at end of September higher than the year before

    ORDER BACKLOG AT END OF SEPTEMBER HIGHER THAN THE YEAR BEFORE Backlog of customer orders (pcs) Rolling 12 mo average (pcs) 7000 7000 6000 6000 5000 5000 4000 4000 3000 3000 2000 2000 1000 1000 0 0 12/14 3/15 6/15 1/15 2/15 4/15 5/15 7/15 8/15 9/15 01/13 02/13 03/13 04/13 05/13 06/13 07/13 08/13 09/1

  23. Slide 23: Market situation and future outlook

    MARKET SITUATION AND FUTURE OUTLOOK 23

  24. Slide 24: Consumer confidence in Finland

    odotukset omasta taloudesta seuraavan 12 kk:n kuluttua CONSUMER CONFIDENCE IN FINLAND 16 Expectations for own finances 14 Expectation, 21st century average 12 10 8 6 4 2 0 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 7/09 1/10 7/10 1/11 7/11 1/12 7/1

  25. Slide 25: Retail trade trends in operating countries

    25 % (rolling 12 mo) -2,0 10,0 0,0 2,0 6,0 8,0 4,0 1/2013 2/2013 3/2013 4/2013 5/2013 6/2013 ROLLING 12 MO 7/2013 8/2013 9/2013 10/2013 11/2013 12/2013 1/2014 2/2014 Source: Eurostat, excl. motor vehicles and fuels 3/2014 4/2014 5/2014 6/2014 7/2014 8/2014 9/2014 10/2014 11/2014 12/2014 1/2015 2/201

  26. Slide 26: 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 (10/2015-9/2016) in comparison with the 12 months preceding the reporting period (10/2014-9/2015). The general econ

  27. Slide 27: For shopping to be fun

    FOR SHOPPING TO BE FUN

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