Kesko Oyj Class A · OMXHEX:KESKOA
Kesko Oyj Class A — Investor Day (2022)
17 slides from Kesko Oyj Class A's investor day presentation, Dec 7, 2022
Slide 1: Building and Technical Trade – Leading Operator in Northern Europe
BUILDING AND TECHNICAL TRADE – LEADING OPERATOR IN NORTHERN EUROPE Jorma Rauhala President, Building and technical trade Deputy CEO Kesko Capital Markets Day 2022
Slide 2: A Good Strategy
A GOOD STRATEGY KESKO GROWTH STRATEGY BUILDING AND TECHNICAL TRADE GROWTH STRATEGY FOCUS ON NORTHERN EUROPE ONE UNIFIED COUNTRY-SPECIFIC STRATEGIES: CUSTOMER EXPERIENCE FINLAND: GROWTH AND MARKET LEADERSHIP IN TECHNICAL TRADE, BUILDERS MERCHANT, DIY DIGITALISATION SCANDINAVIA: GROWTH ESPECIALLY IN T
Slide 3: Leading Player in Building and Technical Trade in Northern Europe
LEADING PLAYER IN BUILDING AND TECHNICAL TRADE IN NORTHERN EUROPE Total retail sales of €6.5 billion*, B2B accounts for over 80% of sales** TECHNICAL TRADE BUILDING AND HOME IMPROVEMENT TRADE • Net sales €2,231 million • Net sales €2,387 million • Operating profit • Operating profit €143.5 million •
Slide 4: Strong Growth and Improving Profitability
STRONG GROWTH AND IMPROVING PROFITABILITY 55,000 000 500 4,764 450 4,486 44,500 500 4,388 400 4,331 348 350 4,100 4,103 4,066 318 44,000 000 300 250 202 33,500 500 200 3,250 143 127 150 98 96 33,000 000 100 50 64 22,500 500 0 2015 2016 2017 2018 2019 2020 2021 Q3/2022, rolling 12 months Operating 2.
Slide 5: Reasons Behind Our Success
REASONS BEHIND OUR SUCCESS Al
Slide 6: Country-Specific Approach Yielding Results
COUNTRY-SPECIFIC APPROACH YIELDING RESULTS FINLAND SWEDEN NORWAY POLAND AND BALTICS KESKO SENUKAI € million 75 200 75 30 45 50 50 100 30 15 25 25 15 0 0 0 0 0 -15 Strong market leader Good position achieved Strong market position in In technical trade Joint venture Kesko Senukai in technical trade a
Slide 7: Technical Trade a Perfect Fit
TECHNICAL TRADE A PERFECT FIT Onninen's strong performance as part of Kesko Net sales 2016-2021 and Q3/2022 Comparable operating profit 2016-2021 and Q3/2022 150 2,000 2 000 100 1,500 1 500 50 1,000 1 000 0 2016 2017 2018 2019 2020 2021 Q3/2022 2016 2017 2018 2019 2020 2021 Q3/2022 rolling 12 rollin
Slide 8: Customer Base in Technical Trade Offers Great Growth Potential
CUSTOMER BASE IN TECHNICAL TRADE OFFERS GREAT GROWTH POTENTIAL Green transition and renovation maintain demand over cycles Nationwide operators 16 % MAIN PRODUCT CATEGORIES Small and medium-sized or regional operators • Heating, plumbing 84 % • Electricals • Ventilation and refrigeration 8 Kesko’s e
Slide 9: Building and Home Improvement Trade Customers Focused on Renovation
BUILDING AND HOME IMPROVEMENT TRADE CUSTOMERS FOCUSED ON RENOVATION Majority of customers small and medium-sized operators Occasional MAIN PRODUCT CATEGORIES customers Nationwide contractors 14 % 7% Professional builders • Building materials • Timber Project customers • Surface materials 18 % Small
Slide 10: Market and Growth Drivers
MARKET AND GROWTH DRIVERS Al
Slide 11: Total Construction Is Estimated to Slightly Decline
TOTAL CONSTRUCTION IS ESTIMATED TO SLIGHTLY DECLINE Renovation construction is estimated to continue to grow 2019 2020 2021 2022e 2023e 2024e -2.6 -1.1 1.7 2.6 -3.5 -2.1 0.2 1.1 6.6 3.2 -6.6 -0.4 0.9 -1.8 1.6 0.6 -1.2 3.1 5.0 -2.1 3.7 4.5 0.1 1.3 Total construction output % change Source: Euroconstr
Slide 12: All Businesses Well Positioned to Benefit from Megatrends
ALL BUSINESSES WELL POSITIONED TO BENEFIT FROM MEGATRENDS GREEN RENOVATION ENERGY TRANSITION SAVING 12
Slide 13: Green Transition Already Visible – Sales of Energy-Saving Products Booming
GREEN TRANSITION ALREADY VISIBLE – KESKO’S SALES OF ENERGY-SAVING PRODUCTS BOOMING SALES PORTFOLIO % OF TOTAL SALES / CLUSTER 10/2021-09/2022 GREEN TRANSITION AND CONVENTIONAL BUILDING ENERGY SAVING AND TECHNICAL TRADE 36% 60% Very strong Slight increase increase in demand in demand HOME, GARDEN AND
Slide 14: Big Potential for Growth in Technical Trade
BIG POTENTIAL FOR GROWTH IN TECHNICAL TRADE Total market €22 billion Technical trade Retail market 2021 (€bn) 2.8 Technical trade Share of current operating Retail market 2021 (€bn) 2.5 21%* market Market share 44% Technical trade Retail market 2021 (€bn) 5.4 Technical trade Share of current operati
Slide 15: Building and Home Improvement Growth Strongly Focused on Builders Merchant
BUILDING AND HOME IMPROVEMENT GROWTH STRONGLY FOCUSED ON BUILDERS MERCHANT Total market €24 billion Professional Consumers builders Professional Consumers Retail market 2021 (€bn) 3.6 2.2 builders Market share 14% Retail market 2021 (€bn) 2.1 1.5 Market share 44% Professional Consumers builders Reta
Slide 16: Focus on Growth and Profit Improvement
FOCUS ON GROWTH AND PROFIT IMPROVEMENT ACTIVE SALES WORK AND SALES MANAGEMENT MARGIN MANAGEMENT ENSURING STRONG PROFITABILITY THROUGH OPERATIONAL EFFICIENCY UTILISING DIGITALISATION IN SALES AND IMPROVING THE EFFICIENCY OF OWN OPERATIONS ACQUISITIONS IN SCANDINAVIA 16
Slide 17: Thank You!
THANK YOU! Al