Slide 1: Interim report January-June 2012
Interim report January-June 2012 25 July 2012 CFO Jukka Erlund
Slide 2: Kesko's January-June 2012
Kesko’s January-June 2012 • K-Group’s sales €5.9 billion, up 4.9% (VAT 0%) • Kesko’s net sales €4.8 billion, up 4.4% - Sales grew in all divisions in January-June - During the second quarter, the growth of sales was significantly slowed down by the decrease in car sales (-28%) attributable to the ca
Slide 3: Main focus areas in Kesko's operations
Main focus areas in Kesko’s operations • Strengthening the growth of sales - K-food stores’ competitive advantage projects - fruits and vegetables, bread, service counters - Multi-channelled service models of K-Group’s chains - store site network and online services • Improving the profitability of
Slide 4: Ensuring Kesko's earnings and return on capital
Ensuring Kesko’s earnings and return on capital • Divisions take significant measures to enhance sales and purchasing operations and to adjust costs, working capital and capital expenditure in order to ensure earnings and return on capital - Significant cost savings will be done in all functions - D
Slide 5: Net sales by division 1.1.-30.6. (M€)
Net sales by division 1.1.-30.6. (M€) 2012 2011 Change Food trade 2,101 2,025 + 4% Home and speciality goods trade 721 687 + 5% Building and home improvement trade 1,411 1,327 + 6% Car and machinery trade 627 621 + 1% Group total 4,778 4,575 + 4% 5 Q2 2012 Media and analyst briefing 25.7.2012
Slide 6: Group's net sales by quarter (M€)
Group’s net sales by quarter (M€) 3000 +8.5% +7.8% +7.4% -0.5% 2500 +10.2% 456 388 +7.4% 467 483 +6.1% 357 2000 306 1500 -2.0% 1000 2,016 2,094 1,961 1,977 1,937 1,797 500 0 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 Finland Other countries 6 Q2 2012 Media and analyst briefing 25.7.2012
Slide 7: Operating profit excl. non-recurring items by division 1.1.-30.6. (M€)
Operating profit excl. non-recurring items by division 1.1.-30.6. (M€) 2012 2011 Change M€ Food trade 74 87 -13 Home and speciality goods trade -13 -5 -8 Building and home improvement trade 6 10 -3 Car and machinery trade 26 32 -6 Group total 84 118 -34 7 Q2 2012 Media and analyst briefing 25.7.2012
Slide 8: Operating profit excl. non-recurring items Jan-Jun (2001–2012)
Operating profit excl. non-recurring items Jan-Jun (2001–2012) 151.2 150 122.9 117.7 118.3 99.0 100 89.4 84.3 74.9 46.2 50 41.6 39.8 20.3 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 8 Q2 2012 Media and analyst briefing 25.7.2012
Slide 9: Operating profit by quarter (M€)
Operating profit by quarter (M€) 120 90 0.6 1.3 60 83.3 89.2 0.8 71.5 30 2.8 60.7 34.9 23.6 0 -1.0 -1.7 Q1 Q2 Q3 Q4 Q1 Q2 -30 2011 2012 Operating profit excl. non-recurring items Non-recurring items 9 Q2 2012 Media and analyst briefing 25.7.2012
Slide 10: Group's profit before tax 1-6/2012 (M€)
Group’s profit before tax 1-6/2012 (M€) 150 120.1 120 1.4 84.8 90 1.1 60 118.3 84.3 30 0.5 0 -0.5 -30 1-6/2011 1-6/2012 Net financial items and income from associates excl. non-recurring items Operating profit excl. non-recurring items Non-recurring items 10 Q2 2012 Media and analyst briefing 25.7.2
Slide 11: Food trade 1-6/2012
Food trade 1-6/2012 Net sales 1-6, M€ • Grocery sales of K-food stores increased 2500 by 4.9% 2,025 2,101 +3.8% 2000 • Kesko Food’s net sales grew by 3.8% 1500 – Sales of Pirkka products grew by 15% 1000 500 • Operating profit performance was impacted 0 by the expansion of the store site network 201
Slide 12: Home and speciality goods trade 1-6/2012
Home and speciality goods trade 1-6/2012 Net sales 1-6, M€ • Net sales increased by 5.0% 1000 - Intersport, Asko and Sotka achieved 800 687 721 +5.0% good sales performances +(..)% 600 +2.9% • Profitability was weakened by the 400 integration and development measures of 200 K-citymarket and Anttila,
Slide 13: Building and home improvement trade 1-6/2012
Building and home improvement trade 1-6/2012 • Net sales grew by 6.3% Net sales 1-6, M€ - Sales growth remained strong in Russia 1600 and Norway 1,327 1,411 +6.3% - Towards the end of the period, the 1200 development of sales weakened in +8.6% 800 Finland, Sweden and the Baltic countries +3.7% - In
Slide 14: Car and machinery trade 1-6/2012
Car and machinery trade 1-6/2012 Net sales 1-6, M€ • Net sales increased by 1.0% 800 621 627 +1.0% - Due to the car tax change, net sales 600 +5.4% development during the second 400 quarter -20% +0.6% 200 • Market share of Audi, Volkswagen and 0 Seat passenger cars and vans increased 2011 2012 to 20
Slide 15: Group's capital expenditure (M€)
Group’s capital expenditure (M€) 250 194.6 200 23.2 171.9 150 23.8 100 171.4 148.1 50 0 1-6/2011 1-6/2012 Store sites Others 15 Q2 2012 Media and analyst briefing 25.7.2012
Slide 16: Equity ratio, %
Equity ratio, % 60 50 40 30 52.1 51.1 20 10 0 6/2011 6/2012 16 Q2 2012 Media and analyst briefing 25.7.2012
Slide 17: Return on capital excl. non-recurring items, moving 12 mo (%)
Return on capital excl. non-recurring items, moving 12 mo (%) 20 15 10 14.6 5 9.6 10.4 8.0 0 Return on equity, % Return on capital employed, % 7/10 - 6/11 7/11 - 6/12 17 Q2 2012 Media and analyst briefing 25.7.2012
Slide 18: Earnings/share (diluted)
Earnings/share (diluted) € 1,0 0.79 0,8 0.01 0.55 0,6 0.01 0,4 0.78 0.54 0,2 0,0 1-6/2011 1-6/2012 Earnings/share excl. non-recurring items, diluted Earnings/share, non-recurring items, diluted 18 Q2 2012 Media and analyst briefing 25.7.2012
Slide 19: Future outlook
Future outlook Estimates of the future outlook for the Kesko Group's net sales and operating profit excluding non-recurring items are given for the 12 months following the reporting period (7/2012-6/2013) in comparison with the 12 months preceding the reporting period (7/2011- 6/2012). Resulting fro
Slide 20: Thank you!
Thank you!